XpresSpa Group Inc (XSPA)

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Vringo Could be added to Russell 2000 Index

http://seekingalpha.com/article/1326521-trades-to-profit-from-the-coming-russell-2000-rebalancing?source=yahoo

Due to some legal risks, this is not an official Pipeline Data R2K pick. However, barring a disaster, we believe Vringo will be added to the Russell 2000. For those of you who enjoy a little extra risk, this one might be for you.

Vringo has been a hotly contested stock ever since James Altucher wrote his controversial article on "Why Google Might Be Going to $0". The excitement began when Vringo merged with I/P Engine, which purchased a series of Internet-related patents from Lycos. The merged entity is now in the process of suing Google (GOOG) and others from infringement.

The stock spiked after the article surfaced. By the time Russell did its 2012 evaluation, Vringo's valuation had more than doubled to $40 million, but not enough to be added to the R2K. Later, the company raised a substantial sum of money, increasing its total shares outstanding to over 80 million. Thus, its market cap is now more than enough to gain entry into this year's Russell.

With 20% of its total shares short (and over 30% of its effective float), VRNG is susceptible to a short squeeze. We're sitting this one out, but for more risk-minded investors, being added to the Russell could serve as a spark ahead of Russell Investment's official announcement.