Voip-Pal.com Inc (OTCMKTS: VPLM) has taken a massive hit in 2019 on investors questioning the company’s outlook and growth metrics. After a harrowing plunge, the stock is currently languishing at all-time lows and in dire need of breathtaking catalysts to reinvigorate investor interest. An 80% plus plunge leaves the stock flirting with the $0.01 level and the bears in firm control.
VPLM Price Analysis
While the stock has underperformed for the better part of the year, consolidation at the $0.01 in recent weeks might as well signal the bear run has run its course. The stock appears to have found support at the critical technical level.
Considering the long-term descending trend line, Voip-Pal.com will have to rise and find support above the $0.02 level, if it is to emerge as a bounce-back play. Below the $0.02 level, the stock remains vulnerable to further drops in continuation of the long-term downtrend. A rally-followed by a close above the $0.02 level, should open the door for the stock to make a run for the $0.03 level, another key critical technical level.
Voip-Pal.com is engaged in the development and distribution of broadband Voice-over-Internet Protocol services. The company boasts of a vast portfolio of patents touching on VoIP technology or lawful intercept routing as well as billing and intercepting voice over IP.
Patent Infringement Legal Tussle
Voip-Pal.com underperformance comes at a time when it is entangled in a fierce legal against big tech giants of the likes of Apple, AT&T, and Amazon. The company has sued the tech giants over the use of some of its critical patents without authorization.
In the lawsuit, the company alleges that the tech giants continue to infringe on its patent in using them without authorization. According to a filed lawsuit, Voip-Pal.com has taken issue with Amazon and Apple using patented technologies to direct voice and video calls to their customers on Echo devices as well as iOS devices.
According to Voip-Pal.com Chief Executive Officer, Emil Malak, Amazon Alexa platform calling and messaging platform continues to infringe on patented technologies.
“Our patents have more than nine years term remaining during which time others cannot lawfully use our patented technologies without a license. Our preference has always been to avoid litigation. However, given the unresponsiveness of corporate giants in licensing our patents, we feel our best option is to seek fair compensation for the use of our intellectual property through the Courts,” said Mr. Malak.
The slow pace of the cases appears to have taken a toll on the stock’s market sentiments conversely fuelling a sell-off. Concerns as to whether Voip-Pal.com will come up with a big win also continues to rattle investors.
“Like many smaller innovators, our Company’s patents have faced serial challenges from Big Tech firms, relying on new legal loopholes. We are optimistic the legislators and the courts will take appropriate action to protect software patents that improve computer functionality properly,” explained Mr. Malak.
According to the Chief Executive Officer, he has had to turn down offers over the years pertaining to the company’s rich patent portfolio. The executive insists they will continue to battle the tech giants in court in a bid to recoup the maximum value for shareholders.
In addition to legal tussle in the U.S, Voip-Pal.com is also preparing for legal battles in Europe as well. The company is planning to file complaints in Germany, which would set the stage for it to fight for its patent in the market with more than 700 million mobile subscribers.
“We are committed to doing everything we can for our approximately four thousand, five hundred shareholders, and we will not stop until we bring this process to a successful conclusion. Patience is a virtue,” added Mr. Malak.
Voip-Pal.com finds itself in a precarious position amidst a wave of legal tussles involving tech giants over patent infringement. The lack of substantial update validating the company’s long-term prospects as well as growth metrics away from the legal battles is one of the reasons why investors have continued to shun the stock.
As it stands, Voip-Pal.com needs to serve groundbreaking catalysts indicating how it intends to generate long-term shareholder value if the stock is to bounce back from current lows. However, for those looking at VPLM from a risk/reward perspective, the rewards could be huge with the downside being limited from current levels.
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Disclosure: We have no position in VPLM and have not been compensated for this article.