XpresSpa Group Inc (XSPA)

[tobinator00]

Quite Accumulation

That firm bid continues to absorb everything that the shorts throw at them. I got home just in time for the last few minutes of trade. The sellers were pushing Vringo to close in the high 3.30's then buyers came in and pushed it back over $3.40. In fact, there were over 100,000 shares on the bid as the stock closed. This is not retail coming in to save the day. Someone wants this stock and they have some capital behind them.

I checked my Interactive Brokers to view the detail of the shares short availability and rate. I believe that detail on a half-hour basis is only available for IB users, which I am. FYI, as far as online brokers go, I highly recommend Interactive Brokers.

One thing I see in the short availability data that commonly shows up in VHC, is a sudden draw down of shares at the open of the trading day. This is also a common occurrence for Vringo and explains the often early weakness in the stock on the open. Here's Vringo's short availability data where I had to use a picture to capture the data:



As you can see, 350,000 shares at the open were drawn down to a mere 35,000. I like the rate shorts have to pay as it is 40.3%. Hence, someone borrowing these shares has to pay the equivalent of a 2.6 cent move, every single week to break even. What would be fantastic, is if we could see the short pool dry up and the rate march above 50% again. One thing I should point out with the tight short pool. Vringo's short interest as of today may be still at the 18.5 million figure. Unfortunately, we won't know until August 26th.

The trade is chugging along and I like what I see. About 30+ million shares were bought over the closing price in the last two weeks. Only 1.5 million shares traded today, some were part of that 30+ million and others were fresh short sales. My guess is that the whale(s) who have been accumulating will have to take the price higher to attain some real volume of Vringo. Are they content to accumulate 1 - 2 million shares each day? A few more days of low volume, side-ways trade will set this stock up nicely for another run higher. My crystal ball says that if we get another 10 million share move higher day, that the stock closes over $3.70.

http://stockcharts.com/h-sc/ui?s=VRNG&p=D&yr=0&mn=4&dy=0&id=p57700612870&a=298953728&listNum=3