XpresSpa Group Inc (XSPA)

[xlt leader]

Ok let's talk about shorts. People assume that shorts are smart money and somehow they know something that the market as a whole does not know. The S/A writer writes his piece from that perspective.

Look at the title

Why Are Shorts Increasing Their Positions In These 3 Patent Plays?

He goes on to say about Vringo...

So why have shorts been piling it on Vringo after its win in which Google was found liable for infringing on Vringo's patents?

He does answer his own question in part.

The long duration between the verdict, post trial motions and post trial results has been Vringo's silent killer. The uncertainty of what could and will likely take place in post trial motions has shaken many investors out. Because of this, shorts have taken control and have driven down the price of the stock.

I can show you many examples of incredible pain suffered by shorts who got too extended. Remember a large short position must be covered or bought. If there is a settlement, or an end to this case where Vringo's is rewarded for their victory in court the price will go up, once this is established short-covering will ensue. A while ago I expected many long-term holders to create friction for a rise. I don't believe that is the case now mainly due to the time that has passed. Those decisions have been made they are in or out. I think that those who are not willing to wait are out and those that are in are in for the decision for the most part. In conclusion if you think Vringo will receive a big award or there is a settlement you should be happy that the short position is large as they must cover on a significant rise and they will be the fuel to an even higher price...