Replies to post #32727 on XpresSpa Group Inc (XSPA)

[arper]

because if HJJ rules for VRNG and things continue to perk along for VRNG like MSFT, NASDAQ listing, Russell 2000 listings, M and A hirings, the shorts will have to cover, providing a LOT of buying power to drive the pps north.....

arp

[tobinator00]

Allow me to chime in here. On September 28, 2012 the short interest for Vringo was 7.99 million shares. The first week of October HJJ ruled against throwing the case out of court. The corresponding stock price squeeze propelled Vringo from $3 to $5.5 in two days.

http://stockcharts.com/h-sc/ui?s=VRNG&p=D&st=2012-09-10&en=2013-1-22&id=p61409639411&a=298755873&listNum=3

Now look at what we have today. The short open interest is 17.2 million shares. The number of call option open interest is now just a fraction of what it was back then. Hence, it appears shorts are not as covered via call options as well as back in October. Sentiment back then was euphoria for getting rich quick and the stock was loaded with fast buck traders. Today due to the 4 month sideways grind, investors (IMO) are more in line with the big picture growth prospects of the company than selling into a spike and moving to another stock. We also are going to start trading on NASDAQ to get more institutional interest and likely in late June being added to the Russel 2000.

Hence, our short interest is 9 million shares higher, call open open interest is much lower and the quality of the investor base has improved dramatically from a quick buck to longer term horizons. If short covering and positive momentum buyers pushed the stock from $3 to $5.5, today we have much more buy side potential energy given the right dose of news that could launch Vringo to new all-time highs.

[JJSeabrook]

Yes, what arper said. In my mind the next real opportunity for a short squeeze is the RR ruling. I think that if HJJ DENIES GOOG's Motion to Compel that it will be positively reflected in the PPS with the main reason for that being that it sets us on a course to receive the RR ruling.

This latest increase in the short interest I believe is a bet that the Court is going to grant GOOG's Motion to Compel, which I believe will negatively impact the stock due to its resulting in an inevitable delay on getting a RR ruling for no telling how long.

If the Court DENIES the Motion to Compel, I think the PPS goes up but that the shorts may increase their position again betting that HJJ gives a low RR percentage award. Where they would get killed and eaten alive is if the judge Denies the Motion to Compel, sets the briefing deadlines, and then sets the RR at a high percentage. THAT, my friend, is when I believe you will get to see what a real short squeeze looks like.

Also, the shorts reported to have been added were added prior to VRNG's PR stating they're going to the NASD next week. Follow up a high RR%, VRNG being on the NASD, and then announce a MSFT settlement and you have several rocket boosters on this stock. It would be a LOVELY sight!

JJ