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Sukus you are correct There are long time holders who have stones of steel .. They didnt get rattled when the stock went from 12$ - .17 So I dont think for a second they will throw in the towel until the end now. I can assure you that most of them have been buying quiety on the dips.
NOOOOOOOOOOO .... say it isnt true Not him... Im shocked.
YEP!!!!! LOTS of Warrants not available....
Is that something they learn in med school? mmm crazy Dr ers
You still have a little time to buy in buddy!!!!! But you better hurry.
Hey dont be a hater. people are allowed to take profit when they make it Maybe someone had 4 million shares and took 1 million . Sound like something you would have done if you had the chance correct?
EXACTLY !!!! It is very common for huge swings right before good news hits I see this as a shake out. BUY BUY and then Goodbye shorty..
SAME !!!
At the close we were just under 10 million shares now we are at 11 million 2
or maybe a larger network maybe something like cnbc
does anyone know why crown equity holdings just showed up under news on ameritrade for nwbo 3 new board members one who has knowledge in mergers and acquisitions
Did the same.
Stick around !!!! Your good to have on the board.
Turtle is that you? "Something stinks here" Same words you would always say...
Just a Hunch....GL longs...
Looks like .40s might be in play today
Investors betting against shares in Wirecard AG WDI -35.29% , the stricken German fintech company, hit a prodigious payday this week. For some passionate critics of the company, the reward wasn’t just in money, but in vindication.
Before Wirecard revealed more than $2 billion of cash was missing from its business on Thursday, investors who bet on stocks to decline had made it one of their most popular targets. That set up what may have been one of the biggest paydays for short sellers on a single stock in years.
Up and Down
Wirecard share price
Source: FactSet
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€200
Short sellers, who borrow shares and sell them hoping to buy them back for less in the future, notched paper profits of $2.6 billion off Wirecard’s plunge, according to data-analytics firm S3 Partners. Bets by the eight funds with the biggest short exposure to Wirecard, including in options markets, delivered paper profits of $1 billion according to Breakout Point, a research service.
New York-based Slate Path Capital and two U.K. funds, TCI Fund Management and Marshall Wace, had the biggest short positions Wednesday and are up as much as €184 million ($206 million), €161 million and €136 million respectively over the past two days, Breakout Point estimates. Other funds that were short include Darsana Capital Partners, Samlyn Capital and Viking Global Investors.
The path to riches was hardly linear. While critics were proven right in the end, gobs of money were lost over the years as the company’s share price marched higher, wiping out short bets.
Wirecard runs vital, but little-noticed technology that connects online merchants, consumers and the banking system. It has attracted attention from hedge funds questioning its accounting for so long that some are no longer in business. Blue Ridge Capital, which began shorting Wirecard in the mid-2000s, according to people familiar with the firm, closed down in 2017.
“It’s finally impossible for anyone to avoid what’s been going on and how this company has operated,” said Fahmi Quadir. Her boutique New York fund, Safkhet Capital Management, has had a quarter of its capital devoted to shorting Wirecard since last year.
Fahmi Quadir, founder of Safkhet Capital Mangement. The fund has had a quarter of its capital devoted to shorting Wirecard since last year.
PHOTO: BRENDAN MCDERMID/REUTERS
John Hempton of Bronte Capital in Australia has been betting against the company for about a decade. It has been a costly experience: In that time, its shares went from less than €7 each to nearly €200 each at their peak in 2018. They finished Friday at €25.82, down 75% over two days.
It was painful also because Wirecard made an aggressive defense against the criticism. Some investors said they purposely kept their short bets below the threshold required for disclosure for years to avoid catching the company’s attention.
Matthew Earl, who runs a research and investment firm called ShadowFall Capital & Research in London, spent more than £100,000 ($123,000) on legal and other fees defending himself when the company pursued him over critical reports in 2016.
Under the name of Zatarra Research & Investigations, Mr. Earl and a former partner, Fraser Perring, accused Wirecard of corruption, corporate fraud and lax money laundering controls in part related to illegal online gambling, allegations the company denied at the time.
In December of 2016, Mr. Earl received letters from Wirecard’s outside lawyers that accused him of defamation and malicious falsehood among other things. He noticed a car parked outside his home, which followed him to the train station on at least one occasion.
In one of the letters, reviewed by The Wall Street Journal, Wirecard’s lawyers, Jones Day, confirmed that “private investigators undertook limited and lawful surveillance.” They argued this was necessary to ensure he was available to receive an urgent letter and denied that it was “disruptive, persistent or intimidatory.”
Jones Day declined to comment.
SHARE YOUR THOUGHTS
What lessons do you think investors should learn from the Wirecard situation? Join the conversation below.
Mr. Earl and others, including Blue Ridge Capital, suffered cyberattacks, which they believed were connected to their Wirecard positions. The Citizen Lab, part of the Munk School of Global Affairs & Public Policy at the University of Toronto, found in a report this month that hackers engaged in sustained targeting of short sellers, journalists and investigators working on topics related to Wirecard. Mr. Earl was one of those targeted by a group based in India, according to the report.
The company didn’t respond to requests for comment on claims of hacking, surveillance or intimidation Friday. In an earlier statement on its website, it said: “Wirecard AG has at no time been in direct or indirect contact with a hacker group from India.”
Complicating matters for the shorts, Wirecard found allies in Germany’s financial regulator, BaFin. The government watchdog opened multiple investigations into potential market manipulation by Wirecard short sellers over the past decade, including against Mr. Earl.
In 2019, after the Financial Times published a series of critical articles about Wirecard’s accounting, the company sued the newspaper. BaFin then opened a probe against the lead writer.
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BaFin also took the unusual step of banning short selling against the company for a stretch after the Financial Times articles caused the stock price to drop. It was the only time Germany had banned short selling outside of a financial crisis and involving a single company.
BaFin more recently took aim at Wirecard, launching an investigation this year into its executives over the timing of the release of insider information.
Marc Cohodes, a veteran short seller who invests his own money, said Wirecard’s aggressive defense inspired him to get involved at the beginning of 2019.
“It’s not about the money,” said Mr. Cohodes. “This is all about principle.”
John Hempton of Bronte Capital in Australia has been betting against Wirecard for about a decade.
PHOTO: JEREMY PIPER/BLOOMBERG NEWS
Write to Paul J. Davies at paul.davies@wsj.com and Juliet Chung at juliet.chung@wsj.com
Looks like there isn’t many leaves to shake from the tree.
theres news out on projected timing for data lock
I wonder if linda can shelf more warrants
Understandable... Its been a long long time
Very well said...Trust me losing money for 5 plus years with this company has not felt good 4$ to 12$ to .14.5 ( lots of money ) Sometimes buying on the way down was out of frustration. year after year with asco, dilution ,pryy, turtle, shorts ,enron scandal, woodword, wolfpack, lawsuits etc etc etc I have heard it and been trough all of it . All I can offer is this time it seems a little different. Im holding until the end of trial no matter what. It will be the greatest story ever told or the worst.. Good luck to all the loyal longs and more important the people who deserve a second chance at life.
In fact my first post ever may have been to you. (; No clowns allowed
Flip take it easy trust me Im not part of any management team. Maybe you mis-understood my post. I feel the pain as much as many. Its been 7years for me..
LOL Sorry I wasnt implying that about you.. Just happens I really only read post of the people who makes sense.. Thank you for all your post.... Ive been long and never sold a share since the 4$ days Ive also picked up a large about of shares in the .17-.25 price range Im not going anywhere with my shares...
At the end of the day you either believe in the trial or you dont. There will always be buyers and sellers of any company. If the trial is positive most of us wont make a difference in where the stock price goes. The big boys will decide that. If the trial fails it wont make a difference what happens. So ask your-self the simple question .Do you believe in the science or not. If not then why are you hanging around just to complain. If you do believe in the science, Then i would guess you believe .40 is not the finish line.
maybe its the " Quiet Period".
YEPPA!!!
area of support
first ones on the board today bid .3311 ask .3555
ASCM is the most popular market maker for shorting stocks and create a scare when there in the ask and can. be a resistance level. ASCM often appears on very volitate stocks that made a nice move and ASCM looks to short for the price per share correction. When ASCM appears on the bid side close to the price level it means they're covering their position. In order to cover they need to buy back the shares they shorted so it often provides an area of support.
Why am I a long-biased penny stock trader?
Recently, I discussed the growing trend of newbie short-sellers and short-selling chatrooms. I’m not saying new traders can’t make money shorting, but they’re utterly unprepared for the volatile penny stock market.
A couple of weeks ago, I provided two in-depth blog posts about the XNET short squeeze and why short squeezes are growing in frequency, expressing the difficulty of shorting right now.
Again, let me emphasize: Longing penny stocks isn’t a walk in the park. Over 90% of people fail to trade penny stocks profitably. However, my top students have defied the odds and consistently make money trading penny stocks.
Buying penny stocks has a lousy reputation in large institutions on Wall Street, which has scared many people away from this profitable niche. They’re the worst of the worst companies. After all, penny stocks are penny stocks for a reason! But the problem isn’t penny stocks. People aren’t aware of the scummy practices penny stock companies and their promoters use on a daily basis.
The Dark Side of Buying Penny Stocks
I’ve talked about stock dilution and toxic financing in a ton of video lessons and blog posts. There’s nothing wrong with dilution. Companies do it all the time. Large blue-chip companies like Apple continuously issue new bonds and other notes to fund their research and development.
But penny stocks don’t have the same financing options as large companies. So, they‘re forced into toxic deals that dilute shareholders to avoid bankruptcy.
All companies are out for themselves. They’ll do anything and everything to stay alive, including dump millions of shares on your positions to raise money.
tim-sykes-night-lights-japan
© 2019 Millionaire Media, LLC
Penny Stock Toxic Financing
The underlying reason for most penny stock runs is to help a company justify an offering with a financer. During this deadly cycle of dumping shares on retail investors, companies often run out of ways to finance their operations, leading to toxic deal structures.
The best example of this toxic stock dilution happened with DryShips Inc. (NASDAQ: DRYS). During the autumn of 2016, DRYS went on an impressive multiday run from $4 to a high of $100. This massive short squeeze was one of the largest I’ve ever seen, and many of my students capitalized on the insane move.
Since 2016, the company has undergone numerous reverse splits and continuously issued new forms of toxic financing to help fund its operations. DryShips’s financing forced millions of shares into the public market and caused the stock to fall in price dramatically.
Regardless of a catalyst, news event, or the amount of volume traded on any given day, the structure of the finance deals didn’t allow the stock to spike a considerable amount. It’s a sad thing to see and one of the main reasons penny stocks have such a bad reputation.
Many people invested in DRYS, but over the years, the dilution caused any investment in the company to be worthless.
Adjusted for all the reverse stock splits, here’s the current DRYS chart…
DRYS 4-year chart daily candlestick toxic financing
DRYS 4-year chart: daily candlestick, example of toxic financing — courtesy of StocksToTrade.com
Look at the dilutive downtrend. After factoring in reverse splits, if someone invested $1.6 million at the peak of the November 2016 run, those shares would currently be worth only $5.24 today. (Hint: click on the chart to view full-size in a new browser tab.)
It’s no wonder why penny stocks are terrifying to the outside investor who’s uneducated!
If you’re looking to start your education but don’t know where to begin, my FREE guide to penny stocks is a great resource for new traders.
FCEL’s Dark Side
A current example of toxic stock dilution is occurring with FuelCell Energy, Inc (NASDAQ: FCEL).
Since the beginning of 2019, the company has undergone multiple reverse stock splits and continues to dilute into shareholders.
FCEL YTD chart: daily candlestick, example of toxic financing — courtesy of StocksToTrade.com
FCEL YTD chart: daily candlestick, example of toxic financing — courtesy of StocksToTrade.com
Every time the stock spikes, the company unloads its previous offerings, selling millions of shares onto retail investors. Information about the offerings is challenging to find and requires an understanding of SEC filings.
SEC filings are extremely difficult to read because they’re convoluted with business and lawyer jargon to hide the terrible dilution occurring behind the scenes. (Get my Read SEC Filings DVD here. My first millionaire student, Michael Goode, and I go into detail about our research methods. This must-have DVD simplifies the process of poring over all sorts of SEC filings. And … it pulls back the veil on toxic financing.)
Because of the shady practices by financing firms and penny stock companies, newbies often buy stocks like FCEL when they begin to spike or when a new press release comes out. Sadly, time and time again, the company will sell its offering shares into the spike, causing the stock to dump and newbies to lose money.
The toxic stock dilution practices are legal because they’re fully disclosed in the SEC filings. This dark side of penny stocks is rarely discussed and will never go away. For many companies, it’s their only hope of survival.
The only thing people can do is educate and protect themselves from the dilution. From a long-biased standpoint, traders should avoid stocks like FCEL and DRYS once they become massively dilutive.
I’m proud to say that many of my students did a great job navigating FCEL and their offers the past several weeks.
tim-sykes-mountaintop-trading
© 2019 Millionaire Media, LLC
Shorting the Dark Side
The dilution throughout penny stocks is one of the biggest draws for new short sellers. However, these newbies don’t understand the foundations of trading and can’t appropriately trade a dilutive company like FCEL.
Michael Hudson, Profit.ly user Huddie, is one of my top students. To date, he reports profiting approximately a quarter of a million dollars primarily from short selling stocks. Huddie invested in his education and studied for many years. As a result, he understood FCEL was a great shorting opportunity.
He published a video on Profit.ly discussing how he took advantage of FCEL’s toxic financing. You can watch it here.
Huddie explains in his video lesson how he formed a trading plan around the FCEL dilution and used his live FCEL trade to show students how to take good entries and exits.
Thanks to the lessons from the Trading Challenge, he waited for the proper time to short FCEL and capitalized on the dump.
[Please note Huddie’s results are not typical. He has exceptional knowledge and skills that he’s developed with time and dedication. Most traders lose money. Trading is risky. Do your due diligence and never risk more than you can afford.]
The Truth About Shady Penny Stocks
Penny stocks are a unique niche in the stock market because they’re some of the most highly volatile and scummy companies on the planet — but they can offer incredible trading opportunities.
I always tell my students to invest in their education first. The uneducated people are the ones buying DRYS or FCEL and getting dumped on from their shady offerings. My students understand that not all penny stocks are worth playing.
One of the first lessons from my Trading Challenge is to look at a daily chart and see if a stock has ever tried to run before. In cases like FCEL, it’s clear there’s something fundamentally wrong with the company.
FCEL trended down for all of 2019 with many failed spikes. The failed spikes are a huge red flag for long-biased traders but can be an excellent opportunity for short sellers like Huddie.
The lack of information and shady behavior of penny stock companies can help my students get ahead. I don’t want toxic financing or other misleading practices to end because they potentially only help my students. While there are no guarantees in the market, ever, some of us are all about these situations, under the right circumstances.
My only hope is you take trading seriously and will educate yourself to avoid companies willing to dump millions of shares onto their shareholders.
tim-sykes-trading-waterfall
© 2019 Millionaire Media, LLC
Recent Tweets, Comments, and Trades from Students
FCEL has tried to spike many times, but my students were prepared! Many of them followed Huddie’s example and profited on the short side.
From the Trading Challenge Chat Room
November 6:
1:35 PM jobeauthement: $fcel going back to the gutter where it belongs.
3:08 PM markcroock: float seems like its a few billion lol on $FCEL.
November 7:
11:13 AM markcroock: $FCEL will try give it all day for fade to new lows.
12:47PM Jackaroo: covered $FCEL .43, from .50. Just a small gain because I used small position size, but good practice.
More Comments from the TimAlerts Chat Room
November 6:
10:00 AM MichaelGoode ? SSAK: $FCEL having convertibles outstanding and an ATM certainly don’t help it go up.
1:42 PM SatelliteIncomeUnlimited: $FCEL climbing again, but it’s risky for a couple of pennies per share at the most right now.
November 7:
1:22 PM CKP111: when you buy the dip and it just continuously dipping lol that’s $BNGO. It reminds me of $FCEL.
1:42 PM MichaelGoode: $FCEL broke yesterday’s low.
What’s your opinion on trashy penny stocks? Comment below — I love to hear the opinions of my readers!
I wonder if there is a Harvard connection with Linda and John (Alumni)
I agree
Thats how I see it.
LOL....
So whats your next move with NWBO.
There are no repayments during the first 7 months of the term.
Linda Powers, in regard to approximately 90 million warrants and options held by Ms. Powers. She agreed to suspend approximately 60 million existing warrants and options held or due to her until November 1, 2020, making them unexercisable during this period.
Hold on to you shares people linda is in the drivers seat now.
According to Utopia Capital Research
John M. Fife has a long-standing career as an entrepreneur and investor with decades of experience in venture capital, private equity, and mergers and acquisitions. John received an MBA from Harvard Graduate School of Business and a joint Bachelor of Science degree in Computer Science and Statistics from Brigham Young University.