XpresSpa Group Inc (XSPA)

[spookytrades]

First of all congrats to people that have accumulated enough wealth to can step in and stop a short attack with their own capital. that is impressive!

VRNG, being a thinly traded stock with little public disclosure has been a good short candidate because market perceptions can be easily influenced by the shorts. Most of us longs further think that the lack of communication and guidance by BOD has allowed possible misinformation to be promoted either actively, or simply by human nature as we attempt to fill in the gap of ZTE expectations versus actual settlement value.

Agree completely. When you don't bother with quarterly conference calls and when you do have a successful "win" with your NPE model yet you don't disclose terms you create a VERY murky environment.
Think about this - where would we have been without VRNG24 blog? We would have known nothing! Of course maybe we would have not had such high hopes either....

Rain's thesis, which I agree with, is that the fundamentals of the company have now changed and the market has not priced this in yet, making it a buy.

Well this type of thinking is what sucked me into this stock. When you think you know something the market hasn't yet discovered then you are really really good or lucky or fooling yourself. I recall feeling this way about the Google trial then the ZTE NDA. We all kept thinking load up this is about to explode from $3(pre-split) to $20 (pre-split) ...

My only glitch is what I mentioned earlier, which is that a continuation of the court case by both parties in negotiation does not necessarily mean a satisfactory outcome and settlement for VRNG. My belief is that all this will be clarified to our benefit or detriment very shortly.

agree and that puts us back into yet another BINARY situation doesn't it?

However, if there IS short volume, that would add fuel to the fire due to shorts fear level, which would drive them to repurchase to limit losses as the share price elevates. With VRNG, obviously, we are hoping that there is material $$ accruing to VRNG soon, which could spook the shorts, which would provide more buying power in their attempts to cover.

There has been a consistent short position of about 10% and been as high as 18% if i recall.
To me the forthcoming short squeeze we all been hoping for has been watered down since the shorts know that each month the loan payment has been made in stock which has then likely been released immediately to lock in the 15% profit. (If I understand all that I read). So by choosing to borrow the 12 million or whatever amount and then pay it off with stock they have effectively released millions of shares into the marketplace giving shorts constant supply. So while us longs arent selling perhaps the lender is and the lender supplies enough shares to keep the shorts fed if they want to slowly close their position each month. In one way I can see that the lender would almost have to sell because if the market price drops 10% from the time they "get paid" they risk losing that 15% spread on the market price as the spread is now only 5%.
Agree or disagree?

Is there a chance the short is the same company that loaned them the 12 million? Would that be legal? In theory the lender could short the amount owed (so essentially getting loan paid off in advance) and then reduce their short position with the stock each month they get from the loan payoff using the method you described here

The shorters pick a time where trading volume is light and sends a high volume of SELL orders

All in all everything you posted make sense. It also seems to me that if you as a company are not communicating to your shareholders and the street and are willingly taking on loans that are being paid back in shares that are probably immediately dumped on the market at some interval then you are making yourself a target to attract those hedge funds that seek shorting opportunities.

Agree or disagree?