Replies to post #49224 on XpresSpa Group Inc (XSPA)

[Red Angus]

rkp-- Here's just one of a million stories about how stock shorting is abused. Regarding micro and small caps it can basically be a Wild West situation. From the site You referred to, just one little quote:

"Jim Cramer, in a video-taped interview with The Street.com, best described the media function:

'When (shorting) … The hedge fund mode is to not do anything remotely truthful, because the truth is so against your view, (so the hedge funds) create a new 'truth' that is development of the fiction… you hit the brokerage houses with a series of orders (a short down ladder that pushes the price down), then we go to the press. You have a vicious cycle down – it’s a pretty good game.'"[/quote]

[jomifa8301]

rkp, appreciative for the link on fraudulent shares.
wonder how much that is in play right now, by engulfing the bid with fraudulent naked shorting…

i pulled nasdaq's fail to deliver, month by month for all of 2013 and it shows about 17 million shares.
according to that article, the Actual amount of fraudulent shares can range from several times to up to 40 times of what's reported to the SEC.

17mm is just from 2013, and that's just from what was reported with the sec. whether you assume the actual number of fraudulent shares was two times or ten times (if not more) the amount reported, it definitely creates a significant dilutive effect.

based on this theory, i don't see it likely for a meteoric rise as VHC had…

vhf went from 3-38 from jan 2010 to july 2011, about 18 months.

i tabulated the same nasdaq fail to deliver records from august 2009 through july 2010, a similar 12 month period leading up to it's ascent. and there was only 3.98 million Big difference..

granted vhc has 51mm shares outstanding to vrng's 84mm (110 fully dilutive)

million percent positive google is behind the shorting effort in some way