XpresSpa Group Inc (XSPA)

[tobinator00]

Vringo Short Interest & Trade

Short interest as of July 31 was at 17.5 million. This means about 930,000 shares short were covered on that high volume moon shot on no news two weeks ago. I put a dashed vertical line on the chart when the report end date was (July 31). With Interactive Brokers showing a very tight short pool of 45,000 shares at a high rate of 39%, leads me to believe that the short interest could be back up to 18.5 million shares short. I should point out that the closing price was $3.15 as of the date of the report.

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

The Whale is still lurking and soaking up the shares but is exhibiting more patient behavior. Volume was light as the price was in $3.39 area and picked up the higher the price went. Hence, the Vringo tree is being shaken but not much fruit is landing on the ground. Now buyers look like they have to reach to the get the low level fruit still on the lower branches of the tree.

The longer the price stagnates here with diminishing volume, the less confident fresh shorts are going to be. Assuming this behavior persists, fresh shorts are going to find themselves pushing down on a market that won't budge. This will make them more susceptible to a intraday squeeze. If the intraday squeeze exceeds $3.60, there might be more momentum to push higher before the price gets whacked down.

I do have to point out there are 20,000 calls total at $3.50 and $3 that expire at the end of next week. Last month, call sellers were able to push July $3 calls to be worthless. Now there are Whales involved in the market, can call sellers and shorts accomplish hammering the price to get those calls to become worthless? My observation of this market is that $3 should be a bridge too far. They have a much better chance at $3.50.

Of course should HJMJ rule on RR and apportionment, all bets are off.