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3 Tech Stocks That Soared Last Week
3 Tech Stocks That Soared Last Week
3 Tech Stocks That Soared Last Week
3 Tech Stocks That Soared Last Week
3 Tech Stocks That Soared Last Week
3 Tech Stocks That Soared Last Week
3 Tech Stocks That Soared Last Week
3 Tech Stocks That Soared Last Week
3 Tech Stocks That Soared Last Week
3 Tech Stocks That Soared Last Week
3 Tech Stocks That Soared Last Week
3 Tech Stocks That Soared Last Week
3 Tech Stocks That Soared Last Week
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3 Tech Stocks That Soared Last Week

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VirnetX, Universal Display, and Ambarella soared in a generally quiet market week. Here's how.

VirnetX, Universal Display, and Ambarella soared in a generally quiet market week. Here's how.

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  • 1. 3 Tech Stocks That Soared Last Week
  • 2. These 3 tech tickers beat the market, June 23 – June 27
  • 3. VirnetX gained 7.3%, thanks to a big Tuesday surge.
  • 4. The big move: • VirnetX enjoyed a massive volume spike on Tuesday morning. • In the span of just one hour, more than twice the stock’s average daily volume had shifted hands, driving share prices drastically higher. • Somebody is creating a big position in VirnetX right here, or adding to an existing one. • The stock is a popular component in small-cap and growth mutual funds. • Still, only 55% of VirnetX’s float is held by insiders and institutions, leaving a large portion in the hands of retail investors.
  • 5. Okay, but why the big buy-in? • This surge appears to be a delayed reaction to an earlier favorable patent review decision. • The U.S. Patent and Trademark Office denied all seven petitions by RPX Corporation to review four of VirnetX’s wireless security patents. • The USPTO noted that Apple is a common denominator between all of RPX’s review filings, being sued for using all of the relevant patents. • Apple’s own petitions have already been denied. Using middle- men to try again is a big no-no. • Moreover, the time limits for starting these patent reviews have already expired.
  • 6. The big VirnetX takeaway: • Apple lost one effective tool in the VirnetX patent battles, but the appeals process continues. • The stakes are high, as VirnetX seeks billion-dollar payouts but is not likely to survive if the legal tide turns against the company. • The final outcome of Apple’s defense will be cited and followed in other patent conflicts. This battle is setting the tone for the entire war. • Right now, VirnetX looks like a winner. The question is, how far will Apple push its legal options? This is the kind of bellwether conflict that can go all the way to the Supreme Court. • VirnetX is sitting pretty right now but the stock remains risky. Investors are betting on a long string of perfect outcomes, none of which are guaranteed. • One bad day in court could bring the whole enterprise to its knees. Please be careful with this poker chip of a stock.
  • 7. Ambarella surged sky-high on Tuesday. The excitement faded a bit, but the stock still had a great week.
  • 8. What happened on Tuesday? • Ambarella makes the video processing chips at the heart of GoPro cameras. • GoPro’s wild IPO also drove huge interest in Ambarella and other stocks with GoPro connections. • Moreover, Google just bought Dropcam. The video camera space is simply red-hot right now, which is great news for components suppliers like Ambarella.
  • 9. There’s more to the Ambarella story • Ambarella might sound like a flash in the pan, but don’t write it off too quickly. • The company is showing positive earnings and cash flows, along with 20% annual sales growth. • On Ambarella’s balance sheet, you’ll find $156 million of cash reserves but no debt. • GoPro may be the richest feather in Ambarella’s cap, but the company is set up to thrive even if its target market sags for a while.
  • 10. Finally, Universal Display gained 6.3% for the week. That includes an 8% jump on Friday.
  • 11. Universal Display’s catalyst • Universal Display rose as big-name analyst firm Goldman Sachs reiterated its “buy” rating on the stock. • Goldman analyst Brian Lee also raised his target price from $42 to $44 per share. • The stock currently trades near $31.25, including the analyst note’s self-fulfilling prophecy powers, leaving lots of growth to do before hitting Goldman’s new target.
  • 12. What does Goldman see in this stock? “We believe OLED is one the more underappreciated product cycle stories in our coverage, with new product and customer-driven catalysts lining up to drive stock outperformance [in the second half of 2014].” said Lee. He likes Universal Display’s product pipeline, but the stock is also positioned for big gains in the near term. Lee provided 3 main reasons why: • Investor sentiment is too negative on this stock. • Shares are attractively valued today. • As the market for OLED product moves into the mainstream, Universal Display is executing crisply on new business opportunities.
  • 13. Apple hopes to sell millions of iWatches… but not without this small-cap components supplier.

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