This will probably be my last post on this forum because honestly I don't care at all about FUSZ. I don't trade long or short. If it wasn't for the CEOs last video threatening critics of the company I wouldn't have even looked at FUSZ.
Shorting stocks that go up a lot in price over a short stretch based on hype and/or awareness is common place for stocks in the price range of FUSZ or higher. If you look at the FUSZ chart it has a pump&dump pattern to it that attracts shorts who like to try to time when a stock is going to spike to its peak then begin its big descent. I'd be willing to bet that some people shorted FUSZ way too early and were forced to buy in helping FUSZ squeeze to its all-time highs earlier this month. And yes there is still a large short position in FUSZ. Those shorts will have to cover at some point and as they buy back in those buy-ins will have a temporary positive effect on the stock.
The short problem won't last forever. At these type prices, there will always be shorts showing up any time there are sharp increases in the share price, but I doubt once all the current shorts are forced to cover that FUSZ will have this much of a short problem ever again.
I honestly don't really care about all of that. I just think it is wrong when a CEO threatens critics. People have just as much right to have negative opinions and doubts as they do positive opinions and unflappable belief. All his Naked short and basher talk makes the FUSZ CEO look really really bad. You have to understand that the role the FUSZ CEO is playing right now has typically been played by crooks and super dirty CEOs in the past that were actually running scams. The FUSZ CEO would be better off just shutting up and running his company. The only way to prove the doubters wrong is to follow through on everything you promised.
Maybe FUSZ will develop something great in the future, but nobody can deny that to get to that point, FUSZ was forced to raise a lot of money through share sales. Some of that financing has already resulted in the float growing because of preferred share conversions and debt conversions and the exercising of warrants. Yes the FUSZ share price was much lower when most of that financing was set-up, but to think that people holding stock that cost them between $.07 - $.14 are not going to be selling some stock at these elevated prices is naive.
Eventually those 20,469,028 shares sold at $.16/share to raise all the cash will also become free trading then those shareholders will have the same choice to take large profits if the stock is still trading at a high level.
I don't know if FUSZ will ever meet all of its forward looking business predictions. If it doesn't or it doesn't in a fast enough time frame then FUSZ may have to rely on more financing that could lead to more future dilution. They already have arrangements in place with Kodiak Capital for funding in exchange for super discounted stock if needed.
I think most people would agree that the FUSZ share price rose because people were factoring in future revenues based on what the CEO has been saying in filings and press releases and on social media (we'll define this as hype because it hasn't happened yet. It's predictions for the future).
A big reason the chart became the type of chart that attracted shorts is because the FUSZ CEO wanted to make it all about the hype. He put the focus on the share price now based on future predictions instead of building his business and letting the share price follow. You can't have it both ways. You can't hype up a stock and not expect there to be doubters.
A lot of day traders traded the hype and took advantage of the price action. They didn't care if the hype was real or not. They trade the price action not the stocks. As those traders take profits that negatively effects the FUSZ share price. When those traders move on you are left with the people that are here solely because of the hype. Now all the onus is on the FUSZ CEO to deliver on the hype. He has to be able to put out numbers in the next financial reports that will deliver on what his investors are expecting.
Time will tell if FUSZ becomes the great company that people are expecting or not. I hope for the longs sake it does, but don't ignore the fact that there is a lot of things in play with the FUSZ share price - it isn't just naked shorts and bashers like the CEO wants you to think.
