The answer we've heard from many sophisticated traders is easy: Short Sellers have sung a false chorus for YEARS that "the sky is falling" in order to try to persuade low-information shareholders (or emotional sellers) to dump stock to them cheaply. Just study the comments made over the past five years of imminent doom that never occurs... "horrible stuff" that will be the end of HHSE, so SELL US YOUR SHARES NOW, CHEAPLY! Look at yesterday's trading for instance. 89% of sales were FAKE sales from SHORT SELLERS hoping that someone will BAIL THEM OUT within three days by selling shares LOWER than $.0078.
So what's the solution? One wise shareholder suggested: "Don't sell to them. In fact, FORCE them away by BUYING their fake sale," and then they MUST cover it at whatever price the market demands. Hurt them in their pocketbooks... just like they have hurt the LEGITIMATE HHSE Shareholders these past few years."
The practicality of such a solution, however, is not quite simple. You see, HHSE Management needs to take some of the blame for creating conditions that facilitate such trading activities. Many have rightfully criticized the company for taking months past target goals to complete and file the revised Form 10 Registration - and they cite this delay in registration as a reason why VOLUME (buying) has been LOW, and thus enabling nickle-and-dime stock shorters to make some tiny pocket changes by manipulating the HHSE share price. By pocket change, we are simply referring to how LITTLE these traders are making by "selling" 100,000 shares at $.007 and then SCRAMBLING to "cover" the sales at $.0065. The "profit" is literally $120. Yes, ONE-HUNDRED-TWENTY whopping dollars. About the price of a steak dinner for two at OUTBACK, if that's your idea of a good lunch choice. So make no mistake, the traders that are "shorting" 100,000 blocks of HHSE are extremely small potatoes compared to upside available for longs when the volume begins to rise again. Look at this past week: we posted ONE press release (and minor impact news) and the VOLUME quadrupled! Imagine what will happen when we start releasing our BIG news? The buying volume will flood the sellers and this will have a major and positive impact.
So, yes, the stock has been hurt by tiny little short sellers. But HHSE management takes responsibility for suppressing buyer enthusiasm from our delayed corporate compliance issues. We get it. And we also know that longs are the right bet...
HHSE Management does not provide investment advice, but we're BULLISH on the company and our new activities. So from our worldview, this trader has some solid ideas.
Don't bet against HHSE, you'll lose that wager....
* * * * *
INCREASED SHORT SALE ACTIVITY FOR HHSE - AUG. 11, 2016
Dear
HHSE Investor Relations:
Here
is your Buyins.net RegSHO Compliance Alert for August 11th, 2016. Our RegSHO
Compliance Service helps to protect HHSE from short sellers and market makers
that are violating the more stringent RegSHO market integrity provisions
recently enacted. We are monitoring the trading activity in HHSE and here is
today’s report:
Total Trading
Volume: 195998
Daily Short Volume:
175998
Avg. Price of Shorts
Today: 0.007
Short %: 89.80
Volume at Offer: 35999
Buy%: 18.370
Volume at Bid: 159999
Sell%: 81.630
Shares Crossed: 0.000
Cross%: 0.000
Net Buying vs. Selling:
-124000
Price Change: 0.00010
Friction Factor: 0
The
above data is used to calculate if a fair market is being made in the shares of
HHSE. Friction Factor determines if there is normal or abnormal behavior in the
price action of the stock when compared to the buying vs. selling trading
statistics. Today, your Friction Factor was 0. Here is how to understand
Friction Factor:
1. If Friction Factor is positive, more buying
than selling caused HHSE’s price to rise
2. If Friction Factor is negative, more selling
than buying caused HHSE’s price to fall
3. If Friction Factor is 0, there was no
discernable activity either way
4. If Friction Factor is abnormal, it means that
more buying than selling caused the price to drop, which is evidence of
manipulative activity. In some cases
more selling than buying can cause the price to increase. While this is rare, it must be noted as well.
By
signing up for our RegSHO Compliance Service, we will monitor your trading
daily and identify short selling, illegal short selling, manipulative market
maker activity and alert the media when a short squeeze begins and when forced
buy-ins occur because we were able to get broker dealers, FINRA or the SEC to
force “buy to covers” upon short sellers that have not located, borrowed and
delivered shares shorted by T+3.
Here
are our unique data sources:
1. Nightly Threshold Security Lists ("Naked
Short Lists"): data comes from
AMEX, NASDAQ, NYSE, OTCBB, PINKSHEET exchanges directly.
2. Daily Size of Failures to Deliver ("Size
of Naked Shorts on a day to day basis):
directly from SEC
3. Daily Short Sales Times and Sales Data: data comes from AMEX, NASDAQ, NYSE, OTCBB,
PINKSHEET exchanges directly.
4. Brokerage firms that trades go through: data comes directly from AMEX, NASDAQ, NYSE,
OTCBB, PINKSHEET exchanges
5. Names and positions of short sellers with
assets under management exceeding $100 million: data will come directly from
SEC
6. Blue Sheet Data Requests: We deal directly with FINRA and SEC to alert
them as to which stocks and which brokerage firms SEC and FINRA need to
investigate.
7. Trading Statistics and Friction Factor are
based on data provided by all US stock exchanges and proprietary analysis of the
activity.