XpresSpa Group Inc (XSPA)

[arper]

Well Rain,

I think the binary event DID occur, in investors minds. Luckily, the VHC verdict hit at the same time as the "negotiations have broken down, we're going to trial" hit, which allowed me to bail in the 1.7x range, only holding on to 20% of original position. I am not totally down on VRNG for all the reasons that you mention. However, without a surprise press release stating that negotiations with other companies have yielded something accruing to the bottom line, I think the likelihood is that the share price will languish and slowly drop, allowing you to accumulate as many shares as you want at a lower price. We've already broken below the Jan 19th low. I won't be surprised to see 1.3x's as shorts continue to spook the disappointed longs.

The adverse psych climate is that VRNG management has yet to prove they will manage negotiations with other companies efficiently, opening the door to prolonged law suits and higher cash burn rate. While this may not actually be the case, I believe you are already seeing this tenor show up on the message boards. It will be interesting to see what the shorts do now. I feel that management's lack of satisfactory negotiation conclusion left the gate open for them to cover at a lower price, and they are not trapped.

Will continue to follow, and expect I might repurchase in the 1.30's. Wish there were 1.5 calls........

best,

arp