Everyone wants to talk about VRNG and the most common question I get is someone asking if Vringo is a buy or sell.

I can’t tell you if you should buy or sell Vringo (VRNG) because I’m not a licensed financial advisor. What I can tell you is that I have bought VRNG in my own personal trading account and that I’m willing to gamble on it.

Is Vringo (VRNG) a scam stock? A new blockbuster article was released by Scott Matusow on Seeking Alpha today that reveals why some think VRNG could be the stock pick of the year.

I am long Vringo (VRNG) stock in my own personal trading account so I have been following this stock closely for the last month.

The way I’m playing VRNG is in the September $4 call options. I have xx amount of dollars I’m willing to gamble on VRNG and if I’m wrong, the options expire worthless and I lose that money. I’m comfortable with that. I know exactly how much I’m willing to lose on the trade.

An extremely well written article was published today on Seeking Alpha by Scott Matusow. You can read the article here: http://seekingalpha.com/article/817531-vringo-how-mark-cuban-s-large-patent-hedge-bet-could-make-a-bundle?source=yahoo

Scott Matusow had interviewed Mark Cuban last year and Mark told him that he disliked patent troll companies because of how much they have cost his businesses. It was a little preplexing at first that Mark Cuban would invest in a company that he really didn’t like their business model.

The great thing about Mark Cuban is that he’s a businessman first and he doesn’t let his own personal negative biases interfere with making money. In fact, he purchased VRNG to hedge against other losses he will take from other patent trolls.

Cuban offered the following explanation related to his Vringo investment:

This is a hedge against the unlimited patent exposure all the companies I have investments in face. Patent risk is impossible to quantify. It’s unrealistic for most small to medium businesses to have any clue which patents they are at risk over. Vringo’s IP from the merger is the flip side of that risk and offers an imperfect hedge. So, I made the investment.

Scott Matusow quotes the original article by James Altucher entitled Why Google May Go To $0 (http://techcrunch.com/2012/03/31/why-google-might-be-going-to-0/ which linked to the following YouTube video where Google explains how their Quality Score is derived. Watch this video here: http://www.youtube.com/watch?v=BSd_2gfsFCs

Now go here to view the court filing by Vringo (VRNG): http://www.vringoip.com/files/IP%20Engine%20Complaint%20Stamped.pdf

When you compare the two, it looks like the exact same thing. James Altucher writes, “You decide. But it looks like the exact same to me.”

What Google should do is to buy a bunch of Vringo (VRNG) stock then settle with them. They can hedge their settlement loss nicely by being in VRNG if it pops from $3 to $30. In fact, I’d be surprised if Google didn’t already hold some VRNG stock as a hedge. I don’t think that would be illegal but I’m not a lawyer. I see JP Morgan Chase hedging all the time. Why not Google?

VRNG is a JB pick. That’s how I found out about it, and why I’m passing it on to you. Folks, if you make some really good money on VRNG in the coming weeks and months, make sure to give JB some love by signing up to his service here: http://www.guerillastocktrading.com/AwesomeTrader

VRNG is a JB pick. That’s how I found out about it, and why I’m passing it on to you. Folks, if you make some really good money on VRNG in the coming weeks and months, make sure to give JB some love by signing up to his service here: http://www.guerillastocktrading.com/AwesomeTrader