Good morning members,
Potential Short Squeeze Feature Report 12-15-14
Viggle, Inc. (NASDAQ: VGGL)
We believe Viggle, Inc. may be a victim of illegal shorting tactics known as “naked short selling”
As reported by Buyins.net on November 14, 2014, much of the increase in short interest has come from “naked shorting”. Naked short selling, or naked shorting, is the practice of short-selling a stock without first borrowing the security, or ensuring that the security can be borrowed, as is usually done in a short sale. When the seller does not obtain the shares within the required time frame, the result is known as a "failure to deliver", No exact system to measure naked short selling exists but typically the level of trades that fail to deliver from the seller to the buyer within the mandatory three-day stock settlement period is seen as evidence of naked shorting, Naked shorting is illegal because it allows manipulators a chance to force stock prices down without regard for normal stock supply/demand patterns. In 2008, the U.S. Securities and Exchange Commission banned what it called "abusive naked short selling" in the United States, as well as some other jurisdictions, as a method of driving down share prices.
The naked shorting in shares of the company’s stock has been brought to the attention of the SEC. Actions by the SEC to limit naked shorting, in combination with further positive results in the company’s business operations, lead to a potential “short squeeze”. According to research by Buyins.net, a “squeeze trigger” exists near the company’s current share price.
Guess who showed up on the Reg Sho threshold list very recently? You guessed it, Viggle, Inc. (NASDAQ: VGGL)
http://www.nasdaqtrader.com/trader.aspx?id=RegSHOThreshold
Explanation of a threshold: As defined in Rule 203(c)(6) of Regulation SHO, a “threshold security” is any equity security of any issuer that is registered under Section 12 of the Exchange Act, or that is required to file reports under Section 15(d) of the Exchange Act (commonly referred to as reporting securities), where, for five consecutive settlement days:
There are aggregate fails to deliver at a registered clearing agency of 10,000 shares or more per security; the level of fails is equal to at least one-half of one percent of the issuer’s total shares outstanding; and the security is included on a list published by a self-regulatory organization (SRO).
A security ceases to be a threshold security if it does not exceed the specified level of fails for five consecutive settlement days.
Hopefully you are starting to grasp the concept of “short squeezes” and “naked short selling”. We will continue to issue more information on this subject for the sake of our group/members as some of our feature companies like VGGL have this underlying catalyst.
After a recent look at short interest on VGGL. It has increased from 230k to 900k shares in the 2 weeks ending Nov 28th. This is what is reported. Some traders have told us that the real short is usually multiples (2x-3x) higher than what is reported. This would be significant for such a low float security like VGGL.
The more we know the better traders we become. This makes us stronger as a whole.
Recent coverage at thestreet.com http://www.thestreet.com/story/12973600/1/viggle-vggl-stock-rises-today-following-hgtv-partnership.html
Deal with direct TV: http://www.directv.com/DTVAPP/content/viggle
The Team |
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