Greetings HHSE Friends & Followers - For years now, HHSE has been a proven cash-cow for short-sellers and those engaged in “boxing” the bid-ask spread with trade strategies and computer algorithms. This has been fertile grounds for those near (or past) the line of stock trading legalities... as their strategy only collapses if the buying pressure for HHSE significantly increases, or if the spread is minimized when the PPS is over $.02 / share.
About two weeks ago, HHSE stock began to experience a 10-fold increase in daily volume and a PPS improvement of more than 80%. This new interest in HHSE is being fueled by a myriad of market and “real-world” factors, including excitement for the company's new filings and the launch of the MyFlix multi-studio platform (at a moment when streaming services are a consumer rage).
Unfortunately, as is often the case in the market, when some shareholders flourish, others may flounder... and the recent buying volume of 45-mm shares in a short time frame proved that the "box strategy" to suppress HHSE can be defeated.
This is somewhat reminiscent of what has occurred recently with GAMESTOP and AMC Entertainment - two stocks where the naysayers and manipulators had previously flourished by spreading a foundation of falsehoods and "sky is falling" predictions while short-selling the equity. Fortunately, this "Big Lie" was seen in its truth as a being a "Big Short" (see charts below) - and a cavalry of independent traders turned it into the "Big Squeeze." Short sellers were forced to cover their negative bets, and indie traders made billions as a result.
Now, HHSE is facing new pressure from these professional naysayers. No, it's not any pressure from the obvious falsehoods of the "sky is falling" by trying to equate the personal financial reorganization of one of the officers as being somehow impactful or the same for the company (see further information below).
No, the short-sellers have gotten more desperate than simply using their tired misinformation campaign. The short-sellers are in a panic to protect their bet - which Sage investors have told HHSE that they calculate the total short position to be in excess of ONE-HUNDRED-MILLION (100,000,000) HHSE shares. The recent PPS improvement and buying volume for HHSE proves that the short-sellers could be easily squeezed and forced to cover at $.05 or higher. So, they are having to step-up their game. But if success is the best revenge, a suggested new effort by HHSE LONGS and new buyers to squeeze the naysayers into covering HHSE at a premium seems like a great way to start this year.
HHSE is now informed that absurd misinformation has been fed to E-Trade and TD Ameritrade against HHSE, as a move to suppress the accessibility to new buyers for the stock. A formal complaint has already been filed with E-Trade, and a new complaint will be posted today with TD Ameritrade - as HHSE has received a full bill-of-health from the Securities and Exchange Commission to show that no "real world" rationale exists for these trading platforms to put forward obstacles to ON-LINE buying (HHSE). Essentially, both trading platforms are currently requiring that ON-LINE buyers for HHSE "call in to place an order with a broker" as opposed to the simpler / faster method of electronic self-service. The net effect is to stifle buying, while encouraging selling... an obvious advantage to the short-sellers.
If these arbitrary buying hindrances against HHSE are not promptly removed by E-Trade and TD Ameritrade, HHSE will also use its extensive D.C. political connections to seek Congressional and D.O.J. assistance.
In the meantime... it's clear that we have the short sellers running scared. It's clear that their goal is to HOPE to persuade exhausted longs into selling to them cheap (to cover the short position). And it's clear that solidarity of buyers can beat them at their game... after all, even GAMESTOP is surging yet again on the strength-in-numbers momentum!
As a sage trader once said at one of the HHSE shareholders meetings: Stay Long, Stay Strong! HHSE will prevail!
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As mentioned above, some shareholders have asked HHSE why the "creditors list" for the Fred Shefte personal bankruptcy lists a large number of parties who are not now - and in many cases have never been - HHSE creditors. In speaking with Shefte's personal bankruptcy counsel, he was advised to list ANY parties that he thought could, in theory, eventually choose to file a lawsuit claim against Shefte. Rather than limit the list to actual debts or to parties for which Shefte holds a direct obligation, they instead went back to list items over 14-years old, including fully resolved disputes and parties for which no dispute ever existed. It's an absurdly over-reaching list which does not even acknowledge the 4-year statute of limitations in reaching back in time - and instead lists pretty much anyone Fred Shefte ever spoke with relating to a Hannover House project.
Now, what is the "real world" impact of Shefte's personal bankruptcy for those actual and current disputes? For HHSE it's a non-issue, excepting for the potentially positive impact of the "one-judgment rule" which may provide a basis for HHSE to be dismissed in some matters. So when the professional naysayers try (YET AGAIN!) to say that the "sky is falling" (their laughable, ten-year go-to bash), it's just more nonsense designed to try to discourage the one-thing that will KILL their position: buying pressure.
As for the Fred Shefte owned officer-affiliate shares of HHSE, a simple review of the rules, laws and regulations governing the sale restrictions for 144 shares will show that these shares cannot be liquidated in a bankruptcy. There is a mountain of S.E.C. rulings and court precedents to show that officer-owned shares - which are by law restricted from sale - cannot be sold, pledged, assigned, hypothecated or in any way transferred outside of the limitations of Rule 144 of the Securities and Exchange Act of 1933. The professional naysayers suggesting that Shefte's shares will be sold under the bankruptcy are trying to imply that his 6.5-million shares will be flooding into the open, consumer market. This is not the case and it would not be legal under Federal Securities Laws. If it were legal, public company officers would print themselves billions of shares of stock and use it as currency to pay personal debts. It's just another absurd lie from a stock manipulator to suggest otherwise.
Don't buy into more of their "Big Lies" to cover their "Big Short." Those professional naysayers need to be chased away...
ONWARD!
