Shorts of Chinese ADSs tend to short any stock that is up more than 50% from its 52 week low, trades $5M/day and has a market cap over 400M. As NQ's market cap went over $400M, the short interest went up. Their strategy is to spread fear, post bogus claims in blogs and try to cover 1-2 points down. Let's just say....NQ is onto their BS tactics and it will be harder and harder for them to manipulate the share price.
You see, the high short interest here is not due to anything bad surrounding the company, its basically a strategy used on any Chinese stock that fall within the shorts strategy perimeter explained above. Right now there is a large hedge fund out of China shorting this because of what I just mentioned. Their tactics are ruthless, where they even hire people like gogspn4evr to attack a stock they short.
Their tactics are wide varying, but one such tactic that is being used to fool NQ shareholders, is when the short claims to go long to draw in support and as soon as the stock rises some they quickly change course & tell everyone they are now selling & going to short the stock in hopes of suckering others to do the same. Now tell me if that doesn't sound familiar! This is what gogspn4evr just did today!
I did some real digging to get this information & I now have no doubt that gogspn4evr ( w/aliases) is one of these paid bashers by this hedge company that heavily shorted NQ. This was more than just a mere coincidence, he is already using this new tactic. Their other tactics are to try and get you to respond to their post, which they receive additional compensation for. They will also mention a report is coming out that will make this stock tank & we have seen gogs use this tactic also. They also use outright lies & post non stop throughout the day.
We need to work together to keep bumping the facts to the top & new post to refute & challenge his lies to make sure nobody falls for this. TIA - Cheers!
Sentiment: Strong Buy
This is important to understand, because this hedge fund did absolutely no DD on NQ before shorting it, they just shorted it due to it being a small cap chinese stock with a market cap less than 500 mil that had a share price greater than $7.00. This is just a formula they use to determine what company to short. In this case however, they will be shown that these formulas don't always work. Cheers!
Sentiment: Strong Buy