If you have a stake in Vringo, Inc. (AMEX:VRNG), do not expect to receive any dividends in the foreseeable future. If you intend to buy VRNG stock, you should bear in mind that.
While the news about a signed cooperation agreement on Oct. 4 failed to attract investors’ attention, it was President Andrew Perlman and his interview carried out by Equities.com that led to a 5% surge in the value of VRGN stock yesterday. As a result, VRNG closed at $1.3499 per share on a volume of 24 thousand, i.e twice as much as compared to the previous days. A new paid advertising campaign worth $10 thousand was launched shortly after that.
Vringo, Inc. was established in 2006 and has since been developing software platforms for both mobile social and mobile video services. Having patented a proprietary VringForward technology, VRNG gives customers the opportunity not only to create video clips wherever they are, but also to share those clips with friends by calling them on the phone.
As seen in its latest 10-Q form, VRNG concluded the second calendar quarter of 2011 with:
- cash reserves of $407K;
- $1.85 million in current assets, 56% of which comprised of restricted cash equivalents;
- $1.9 million in current liabilities;
- $227K in revenue and a net loss in excess of $1.5 million.
When VRNG completed its IPO in June 2010, it managed to place approximately 2.4 million units at a price of $4.60 per unit. Each unit contained one share of common stock and two warrants exercisable within 5 years at an exercise price of $5.06. Unless VRNG starts melting its losses, its stock will hardly make a breakthrough on the stock market.
