WordLogic Corporation (OTCBB: WLGC), a $100 million company specializing in predictive text input software, has been on a tear laltely, rising from 50 cents in mid-August to their current stock price of $4.08. The company doesn’t have anything in the way of fundamentals, but they do have an interesting story. This press release has definitely been the cause of t
his runup and it’s gotten quite a few people interested. Over the past few days, this message board has really lit up (since the USPTO appears to have posted the patent on their website) It looks like they finally got the patent for their predictive text technology, an application they initially filed in October 2000.
They already have several foreign patents, but the US could be the big one–think about how many instances of predictive text there are all around us, on handhelds, computers and the internet.
Remember Rambus’ runup a few years ago when everyone got all excited abo0ut their patents? I’m not saying WLGC is the next RMBS–it’s waaaay too early in the game for that–but just realize how far a stock can run when people start thinking about all the possibilities in terms of potential monetary damages from large companies that use these technologies in their products. Take a look at the 5-year charts of PTSC and SCOX, two other microcaps that rode the wave of patent litigation potential before fizzling.
Buying the stock is risky–this could be a buy the story, sell the news kind of situation–but I wouldn’t look to short it just yet either. This is a very illiquid stock, but if the runup becomes too steep (think $7, $9, $12/share) and the volume really blows up (think 2-5 million shares traded in a day), then consider shorting. For now, this is one to put on your watchlist and use it to help in your education of learning how microcap 
hype works.
Disclosure: Timothy Sykes has no position
Please note that due to factors including low market capitalization and/or insufficient public float, we consider this stocks to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.
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