It is easy and plainly obvious that HMNY has been a victim of a vicious Naked Shot Sell attack. The SEC has been notified- and as of yet has done little or nothing to stop it. Why? The SEC is weak and under-resourced to deal with the 100’s of Naked Short Attacks that happen every year.
Here’s a site that explains in extreme detail what Naked Short Selling looks like. Ask yourself, do you see similarities with HMNY?
Here’s a few quotes if you don’t want to click over.
Only a motivated enforcement agency with subpoena power and an accompanying powerful enforcement infrastructure can prove that naked shorting is at the heart of an extensive stock manipulation scheme. However, I believe that the observational evidence is overwhelming that naked shorting practices are widely used to manipulate the stock prices of emerging biotechnology companies as well as many other small and large companies. Unfortunately, naked shorting is an investment variable that investors must understand if they are going to make investments in the emerging biotechnology space in particular and the equity markets in general…..
….started developing my website and its content about four years ago. As I gained more experience, I was startled to find that there was another very important force at work on these companies that was apart from the fundamentals that I was focused on. One would expect a high level of volatility in the stocks in which I specialize. However, this could not always explain the demoralizing collapse of a meaningful number of stocks that I am involved with following some news event.
Suddenly and without a major change in the fundamental outlook, I would see stock prices cut in half in a short period of time. During this time there was invariably a steady day by day price erosion (naked shorting at work) accompanied by an unending stream of contrived negative news flow that was demoralizing to me and other investors.
In order to give more insight into what a naked shorting attack might look like, I have put the predictable elements of a typical attack based on my experience in living through a number of them on separate companies.
• Shorts like to target emerging biotechnology stocks that are engaged in high risk drug development and are not widely covered by quality research analysts.
• The initial and subsequent attacks are almost always triggered by some news event. Obviously, the shorts seek out negative news or an event that creates uncertainty. However, sometimes an attack can be based on a positive news event which the shorts spin to make it appear negative.
• Using the ready platform afforded by the internet and social media, a blogger associated with the shorts goes to work with a negative interpretation of an event. These are usually not sophisticated analyses and are usually limited to one or two pages of text which is invariably one-sided and unbalanced. These are meant to provide “intellectual” reasons and cover for the short attack.
• The most prominent of these bloggers usually have no backgrounds in biotechnology analysis or expertise in the science. I believe that in many cases, hedge fund employees actually write the articles which are cut and pasted into the comments of these bloggers.
• The heart of the naked shorting scheme involves a group of hedge fund traders conspiring to steadily knock out offers for the stock and to trigger stop loss orders (This is explained later in this report). This is called walking the stock down. The power of these conspiracies is striking and in many cases allows the shorts can largely determine the price that they want the stock to trade at.
• The stock weakness gives legitimacy to the contrived negative blogs. The idea is to create fear and uncertainty among investors by making all news events appear to be negatives and to fabricate new issues that the shorts hope will demoralize investors.
• The first time I came up against this, my thought was that the blogger was someone who was just more cynical about the chances for success and had an opposite point of view from mine. This is understandable and common in research analysis. I wrote a respectful rebuttal to their argument.
• I thought that after their rebuttal to my rebuttal, this would end the discussion. We had expressed our opposite points of view, would respectively disagree and move on. This had mainly been my experience in my Wall Street days as an analyst when I disagreed with another analyst. I was wrong.
• The situation quickly escalated. In the rebuttal, the blogger accused me of being stupid, deceitful and being paid by the Company to write positive comments.
• In this case, over 20 articles were then written in a period of a year. Usually, they were timed to a press release and regardless of the news and without exception, each was interpreted as a major negative. A major strategy was to argue that management was lying to investors and manipulating the stock.
• The stock would go down on good news, bad news and uncertain news. One of the pillars of stock manipulation is to make good news appear to be bad.
• The blogger was indifferent to truth and actually would make up information that was factually incorrect. When made aware that the information was wrong, he/she would ignore it and even repeat it in later blogs.
• There are a number of bloggers who participate in these attacks. Many of these bloggers appear to work together and coordinate their negative attacks. It is striking that many of these people have connections to one another. Many of them were trained at a well-known blogging site that was founded by hedge fund people.
• Sophisticated use is made of the Internet and social media. Twitter is used to signal that an attack has begun.
• Shorts are well connected to mainstream media and are adept at getting them to unwittingly participate in the scheme.
• Vicious attacks are launched on writers who might have an opposite but hopefully more well-reasoned and balanced view. The usual line is that they are being paid by management to write positive articles.
• Seeking Alpha has become very friendly to articles supporting short selling and is used extensively by the hedge funds. The site actually promotes as one of its favorite authors a person who writes only negative attack article on companies in which he claims that managements are lying and paying authors who have a positive view on the Company. In his disclosure, he states that he shorts stocks, then publishes a negative article on Seeking Alpha and states that he may cover immediately after the article is published. This seems to meet the definition of a pump and dump scheme. He also acknowledges that he is collaborating with other short sellers. I think they contribute the information for most of his articles
• Seeking Alpha allows articles to be published by anonymous authors. These articles are often extremely bearish and are almost certainly written by people at hedge funds.
• Hedge fund create pseudonyms and publish on a daily basis negative comments on message boards like Yahoo and Ihub.
Does this sound familiar to Investors of HMNY? Of course it does! Shorts will bash this article and they will howl that MP never had a chance! The business model was fundamentally flawed. Etc etc. The fact is the shorts have manipulated this stock knowing it would massively harm the proposed business plan. It has worked and the company has been forced to change direction. Something they always had the ability to do anyway. The 8/15 change over to 3 movies a day will start the ticking time bomb yet again. If a moment comes where HMNY does not NEED to dilute the stock to keep up with cash burn, this stock may control its own destiny. And only then can MP and HMNY potentially turn the game around.
But wait there’s more!!! The players in HMNY have done all this before in a well-documented case with a stock called MAXD. Here is a detailed explanation of how it was all done. Don’t want to click – here’s an excerpt:
154,447,100 Cantor Fitzgerald,
203,762,081 Canaccord Genuity,
<<<<(You should recognize these players!!!)>>>>>>>
Highlighting these Market Makers abusive activities in-concert with each other for just the one month of May, allows regulators, the SEC, FINRA, the U.S. Attorney as well as the media to easily identify the manipulative trading activity and counterfeiting of MAXD shares engaged in by their traders for the past year and well beyond. When overlaid for the entire year (back to June 1, 2017) the math is shocking. 8,117,878,650 total shares have been shorted representing in excess of 40% of MAXD’s total trading volume and it demonstrates that these market makers have knowingly participated in manipulative trading practices and counterfeiting of MAXD shares.
Again looks familiar…here’s more MAXD is actually trying to fight back.
“MAXD is making this report available to the investment world to create a substantial short squeeze opportunity with the goal to return to its shareholders the massive amount of equity stolen by unscrupulous market makers.”
I encourage all HMNY investors to fight back! Canaccord and Citadel have been colluding to walk HMNY down for almost 100 days now! This is coming from the same company that Ted is using to absolutely flood the market with new ATM shares daily!! This has been an absolute scam on ordinary shareholders. A theft of massive proportions played out by criminal Wall Street bankers who played Farnsworth like a total fool.
Want to fight back call FINRA at 240-386 5105
Or send email to firstname.lastname@example.org who has already begun looking into this case and has an open file. He is aware of Robinhood misrepresentations on Share usage as well.
If you have lost money on this stock and want to see it properly protected from illegal manipulation, do your part! Take some action!