Foreign small cap companies are going after Naked Short Sellers in growing numbers. It's the biggest risk to the health of today's public markets. Verb Technology joins Genus Group Hlbz and created in targeting illegal trading activity. A growing number of small cap companies are announcing plans to go after Naked Short Sellers, claiming their stocks are being artificially depressed by illegal training activity very well might be true.

My question is is just where's the evidence Okay, so like for Gns to say that for V-e-r-b to say that like it all could be true I'm hearing a lot of like high level discussion just to show us the data, make the data publicly available. That's my only ask. Genius Group got the ball rolling last week when it said it had appointed a former FBI director to lead a task force investigating alleged illegal trading in its stock that it first to close in early. January.

So the CEO Roger Hamilton told Marco Watch on Friday that had evidence that bad actors had cost the company dearly. Okay, so it sounds like he has evidence. My only thing is like can we get that publicly available so more people can digest it? We want this to stop. They're taking value away from our shareholders, their predators.

They're doing something illegal and we want it to stop. whether that means getting Regulators to enforce existing regulations or put new wins in place. Okay, so for those of you who don't know, naked Short Selling is when you take a short position, but your broker never found the locate for shares for you to borrow to go short. That is naked short.

Telling it's a type of FTD All naked short sales are Ftds. Not all Ftds are naked short Sales Ftds have failed to deliver is more of a high level like General umbrella term word. The company is exploring legal action and is planning an extraordinary uh general meeting in the coming weeks to get shareholder approval for its planned actions. These include paying a special dividend as a way to flesh out Bad actors and working with Regulators to share information.

So the whole special dividend thing. this has been done before we saw it with like Mmtlp? Uh, we saw it with a it didn't really prove like at least as of we know. who knows. maybe the SEC is looking into something, but on a public level it doesn't.

Seems like special dividends have really been able to be utilized in a way that highlights this: Alleged Naked Short Selling Illegal Naked Short Selling is the biggest risk to the health of today's public markets according to I think the CEO of Hlbz. In 2023, we're expecting a genius group to continue to grow strong growth trajectory and we are focused on managing our costs and achieving positive ebitda. So it's a net negative company then so they're up a lot. It seems like a lot of hype right now and it might be deserve hype.

It might be like I said this evidence that the CEOs are alluding to. My only thing is okay I hope it can go publicly available I'm assuming maybe it's not at the moment. Maybe this FBI director or the ex-fbi director who got pulled into this, maybe they're using it. Maybe things are under wraps for lawsuits I don't know but I'm just saying like it would be nice if we as a public could understand because I think a lot of people on these headlines these like exciting sounding headlines.

They're like okay I'll buy but you're buying on like kind of the middleman information of just someone saying we have evidence which is not a good way to be trading or investing. Definitely not investing trading. Yeah, maybe you're a momentum follower. maybe you're using technicals things like that.

But overall what I want to say related to all these companies and the other ones that might join up? Understand: this is an active trade I Wholeheartedly believe this is not something that you like diamond hand into YOLO into and decide to Diamond hand. uh, that's asking for trouble. It very much seems to be like that. I mean look what happened to Gtii like what happened to Bed Bath and Beyond look at what happened to Mullen All of these they're active trades.

You get into it and as soon as reasonably possible set your trailing stop loss to break. Even as you're riding the trend, riding the trend and as it keeps going, keep dragging your trailing stop loss with you. If they get hit great, you made money, get out, Move on to the next play. Remember you could always re-enter because the common question I get is like, well, if I do that and it turns back around.

get back in. If you're in a situation where you have to consider pattern day trading, don't be afraid to burn another day trade. And if you don't have enough, maybe that's just not the day for you to trade. I know it sucks and I'm in no way of supportive of PDT but this is just the environment we're in.

If you're simply fomoing into this because everyone's talking about it, that is a recipe for disaster. This is an active trade unless you know deeply about the fundamentals of the company. I Would not argue that these are fundamental. Investments They are active trades as soon as reasonably possible, set your trailing stop loss to break even, and then after that, hopefully as the equity, the security continues to go in your favor.

just move the trailing stop loss higher and higher and higher based on whatever breakdown or technical analysis or whatever your gut is telling you to do, but just to throw it in and like, just pray that is a recipe for disaster anyway. I Want to see see how this plays out, but right now there's a lot of high-flying things that we know in the past. Things that go up a lot seem to come down a lot. So please, please be careful.

Is there money to be made? Yes, without a doubt. But don't do it without considering your risk.