HMNY Naked Short Selling – Walked Down Share Price – Total Manipulation

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:

643,662,180 Knight/Virtu,

154,447,100 Cantor Fitzgerald,

203,762,081 Canaccord Genuity,

769,731,954 Citadel,

<<<<(You should recognize these players!!!)>>>>>>>

247,276,817 Trade/G1

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 sewall.lee@finra.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!

70 Million Shares of HMNY Traded so far Today! WTF? Pure Evil Today

Never in the history of stock trading has their been more ridiculous volume than this issue.

How is this possible? Naked Short Selling is going through the roof, combined with Massive ATM Dumping. And NO SEC ACTION!

The SEC, FINRA, NASDAQ officials ALL know that this is happening and some officials have even as much admitted it to tipsters who are writing to me. This is a scandalous fraud and it undermines the integrity of the markets when allowed to continue unabated by all regulators.

That no regulator will comment on public record on a massive highly visible spectacular folly like this is absolutely absurd.

Tipsters have alerted me to the potential that Robinhood is making shares of HMNY available for shorting in dark pools, and investors on the platform are totally unaware that their “investment” in Moviepass is actually being used against them to help naked short sellers have confidence that they can cover their positions at any time.

All of this is being done in brutal effort to purposefully pound the stock down to bankruptcy levels.

Farnsworth and Lowe should be screaming from the rooftops and pressing regulators to investigate every possible violation here.

Why have they done nothing? Are they in on this scam?

Some believe that Farnsworth may be collaborating with Hudson Bay and Oppenheimer Funds, siphoning money out of these short sale gains off to the Cayman Islands. That is a radical idea. But nobody thinks it is radical that Farnsworth would be a crook!

HMNY has turned out to be one of the most bizarre, illegally manipulated stocks ever on the face of the planet.

How can the US Government Agencies and the Public Markets not make any moves to investigate this and offer some kind of explanation!!??

This is a fraud unlike we have seen since Bernie Madoff!

Pure criminal, pure evil going on here!

70 Million Shares and a float of what 5 Million? This is manipulation like we have never seen!

HMNY Naked Short Selling – What is it? Why it is Bad, And How Investors Can Fight Back

It is well known that HMNY has had a historically very high short interest, I have written about this a lot here, and how it’s expensive to short this stock.   I am not against short selling generally (however I personally never short stocks as I am not comfortable with uncapped losses) it serves a purpose in the market, and in some cases can provide needed increased liquidity for certain shares and market transactions.

I am however very against Naked Short Selling -with the intention to manipulate a stock price downward.   For those who don’t know what Naked Short Selling is – it is defined as.  “the practice of short-selling a tradable asset of any kind without first borrowing the security or ensuring that the security can be borrowed, as is conventionally done in a short sale.”

So if you are already familiar with short selling, which is –the sale of a stock that the seller does not own. The seller makes such a sale by borrowing the stock in order to deliver it to the buyer.   The obvious big difference here in Naked short selling is the seller has not borrowed the stock needed for delivery when it is time to cover.   Traders can use Naked Selling to manipulate the price of a security by selling more shares into the marketplace than there are shares available to cover, thus putting heavy selling pressure onto the stock.

Naked Short Selling for the purpose of manipulating a stock price is illegal, and I believe it is immoral.  First I will talk about the illegal nature of it.

The SEC has made it clear in their ruling on SHO regulations “abusive short sale practices are illegal. For example, it is prohibited for any person to engage in a series of transactions in order to create actual or apparent active trading in a security or to depress the price of a security for the purpose of inducing the purchase or sale of the security by others. Thus, short sales effected to manipulate the price of a stock are prohibited.”   You can’t be much more clear than that, it is absolutely against the law to manipulate a stock to depress the price of a security.   There is no wiggle room on that ruling.

Now on to why I think it is immoral to attack a stock with naked short selling.  In America, we are trying to build new companies, to innovate with new technologies and new business models.  We lead the world across many industries, our technology, and our innovation as a nation is the envy of the world.  Many are trying to replicate, but none of have been as successful as the great old USA in terms of building long-term wealth and prosperity through hard work innovation and commitment to building new and better industries. This land of opportunity we live in, the rising tide that has lifted the boats for so many of us in this country, it relies on fair market and trust.   I believe it is wrong, immoral, and frankly unAmerican, to try and crush a company and manipulate its stock price for personal gain.

Unfortunately, I believe HMNY / Moviepass, has been a victim of Naked Short Selling to manipulate the stock price lower.  Before I get into that.  I want to talk about an example of where this has happened in the past, and how a brave CEO fought back against it.   I say he was brave because you must understand, it is very hard for a CEO to fight against the machine of Wall Street.  If a CEO turns on Wall Street, they know that it could likely be very detrimental to their company and their career going forward.  You don’t bite the hand that feeds unless you are very brave indeed.  It takes a real whistleblower mentality for a CEO to fight for what is right above what might just be good for him, or even his company.

Overstock CEO Patrick Byrne was just the type of CEO who was willing to fight against naked short sellers.  His story is amazing, and it highlighted that great difficulty and expense involved going after the Wall Street machine.  Way back in 2004 Byrne was upset with what he felt were vicious attacks on his company and his stock.  Byrne filed suit in California and even managed to get laws passed in his home state of Utah limiting large volumes of naked short selling and fining brokers who did so up to $10,000.00.   This, of course, infuriated Wall Street, and accusations back and forth intensified and lawsuits multiplied.  Wall Street continually poured cold water on Byrne, claiming he was a poor leader, and should not focus on short selling, but on running his business better.  Byrne claimed that big firms were spinning phony negative research through nefarious 3rd parties while making it look independent, all while naked short selling the stock, manipulating it downward, so they could profit from the fall.

Ultimately, Byrne settled all of the cases against the big brokers, the largest settlement was with Merrill Lynch who paid $20 Million dollars to end the misery.  Here’s a fantastic snippet from the Press Release Overstock issued when finalizing the settlement.  ”

“Overstock.com feels the fight was well worth the effort.  Bringing this conduct to light has caused useful changes in the way the SEC regulates close-out requirements for stock trading. In short, Overstock believes the effort has helped reform the US Capital markets and lessened the opportunities for illegal stock manipulation.

Commenting on today’s settlement, Overstock.com CEO Patrick Byrne said, “Lao Tzu wrote, ‘In war’s victory keep to funeral ceremony.’  Though I am under no obligation to say so, I want to make clear that Bank of America had nothing to do with the behavior documented in this case. Even with Merrill Lynch, the individuals at issue are no longer employed there. I do not feel like bayonetting any more of Wall Street’s wounded today. Because we fought long and hard to get so many of the documents public, the true story of this decade-long battle can and should be told by an objective journalist. Res Ipsa Loquitur.”

Later, in an interesting twist, Goldman Sachs was fined $15 Million dollars by the SEC for not actually providing borrowed shares their customers thought they were receiving, thus putting Goldman’s own clients unknowingly in a naked short selling situation.  Goldman ultimately was settled out of the Overstock case.  If you want some very entertaining reading on the subject read the Press Release here.

Now mind you, there were plenty of Wall Street brokerages who loathed Overstock and their CEO for all this trouble and mischief caused by Byrne.  It cost both Overstock and the brokerages lots of time and money to deal with all of this fighting, and there really was no clear winner, other than maybe the lawyers who got paid a ton of money.   But the point here is that if we want or expect our boy Ted and HMNY to start fighting Wall Street, you can forget about it.   Ted needs Wall Street big shots one heck of a lot more than he needs retail investors to be happy.  Ted might be mad as hell about the short selling & naked short selling going on, but there is little he can do, he certainly doesn’t want to fight the same fight Byrne did.  Not only is it a big distraction, it costs lots of money, and the fight pits you and your company against Wall Street for years down the road.  So that just is not going to happen.

Now, why do I think that HMNY has been a victim of Naked Short Selling and manipulation?  Well, for the lawyers here or fans of law movies, we have the classic means, motive, and opportunity.

Who is my suspect?  Well, it is AMC of course!  AMC wants MoviePass dead, and while that may seem stupid idea for AMC, this is more about control of American consumers from an old-time puppet CEO in Adam Aron, who does not want to see a challenger company disintermediate his theater and come between AMC and the consumer.  MoviePass has already begun that irreversible disruption, and Adam is fighting mad.   It has been nothing less than all-out war with AMC, with Adam taking the unusual step for a large company CEO of blasting MoviePass at nearly every opportunity, even on AMC’s earnings call, even when AMC had clearly benefited from MoviePass related increases in attendance and sales revenue.  So motive is established and clear – AMC wants MoviePass dead!

Does AMC have the means to manipulate HMNY stock?  You bet they do, AMC is owned and controlled by Wanda group, Aron downplays the Chinese connection, but the facts are clear -AMC is a Chinese majority owned and controlled company.   In fact, the last 2 Board Chairmans have been appointed by Chinese company Wanda, and Adam Aron, is really just a bit of a stooge for Wanda, running the US AMC, while bigger things are happening back in China.

The newest Chairman of the Board for AMC is John Zeng, Zeng is also the President of Wanda Film Group, Zeng is the Chinese conglomerate’s most senior executive in charge of all film-related activity. That includes Wanda Cinemas, Wanda Films and the Qingdao Movie Metropolis in China.  So, yes, AMC is Chinese owned and run.  Aron takes his orders from Wanda.  There is no doubt about that.

Now back to the means.  Wanda has two very large backers, and in a  “you can’t make this stuff up” kind of way, one of them is none other than the Chinese government, and the other is Alibaba!  That’s right, AMC is actually owned partially by the Chinese government, let that one sink in just a bit.  The pockets behind AMC are let’s say, as large as the mother earth itself.

Now, do you think for even a minute that the Chinese like to play fair when a little startup American company is starting to mess with one of their investments?  History proves that China will do what it has to do to protect its interests.   Yes- AMC has the means to naked short sell HMNY into oblivion should they want them dead, and we have established already, AMC wants MoviePass dead.

Now, onto the opportunity.  Just because AMC wants to kill AMC, and would love to see the company stock shrivel up and die, and they have the money to do it, is there really any opportunity for AMC to make that happen.  OF COURSE THERE IS!

Naked short selling really is very loosely monitored by the SEC.  As you have seen with the Overstock story, even if a company suspects it is happening, they are reluctant to defend against it, because they don’t want to risk pissing off Wall Street.  Further, short sellers have very little reporting requirements.  Have you ever noticed it is almost impossible to find out who is shorting a stock and how much?   To make matters even worse, institutional sellers use something called dark pools, which are trades handled outside of the major exchanges to conduct short selling arrangements where there is total lack of any transparency.   And of course, the big firms like Goldman and Merrill are complicit in all of this, because they don’t care if they can make some quick money off doing a short sell deal, even if they neglect doing their part in providing the borrowed shares.  (Note: I am not saying GS or Merill is doing this here, just using them as examples).   So, the opportunity to commit the crime is there, AMC could easily utilize institutions, dark pools, and even offshore traders to execute all kinds of crazy short selling activity.   They could do it through connections via Wanda, Alibaba, or the Chinese Government.

So there you have it, Means, Motive, and Opportunity on manipulative naked short selling.   AMC has them all at their fingertips and has been unusually vocal about it.  What or who could stop them from carrying it out?  The SEC! ha fat chance! They are slow, understaffed, and have nobody complaining to them about it anyway.   

Unless… We long shareholders of HMNY start to complain.  We are the only party in this mess who can fight back!   We have nothing to lose, and everything to gain.   Not only does it serve us longs financially to get the SEC off their butts and start investigating this debacle.   It is our moral duty as Americans to fight against the evils of naked short selling, trying to destroy American industry and ingenuity!   To not complain to the SEC about this would be – well – downright unAmerican!

So I urge you go to the SEC website, fill out their complaint form, they have a specific area in the form identifying naked short selling, let them know you stand against this, and if you have lost money on it, let them know that too!  If they hear from enough of us, they will act!

Heres the link to file your complaint https://www.sec.gov/tcr

Let’s fight this together.  Do it for your pocketbook, do it for your country! Do it for your children!   FIGHT BACK!