MSP Recovery (NASDAQ: LIFW) has been on quite the rollercoaster ride, defying gravity with over 400% gain since September 14th, 2023 with over 240% of that gain happening this week alone. However, the exact reasons behind this meteoric rise remain elusive. Typically, when a company drops major news, you’d expect an instant stock reaction. But in this case, the last significant update from the company was about a week ago, and it’s questionable whether that news was much on the positive side, yet the stock is still zooming upwards.

Background:

Let’s delve into the nitty-gritty of what MSP Recovery, more prominently known as LifeWallet, is all about. Imagine them as the healthcare financial detectives, diligently sifting through the complexities of medical billing and reimbursements. They specialize in recovering money owed to healthcare providers. If an insurance company owes a hospital for a patient’s treatment, these folks ensure that the hospital gets the rightful compensation. But their innovation doesn’t stop there.

Enter “LifeWallet,” their brainchild—a powerful tool designed to revolutionize healthcare transactions. Picture it as a savvy assistant for healthcare professionals, standing by their side in the hustle and bustle of medical care. LifeWallet’s magic lies in its ability to decipher the complexities of healthcare billing and insurance. It guides doctors and hospitals, helping them navigate the tangled web of who should foot the bill, especially in post-accident treatments. It’s a digital ally ensuring fair compensation and smooth financial transactions in the intricate healthcare landscape.

Subscribe to Microcapdaily.com Right Now by entering your Email in the box below. 

MSP is making waves in the healthcare domain with this innovative approach, leveraging data analytics to streamline processes and champion fair compensation for healthcare providers. Much like a rollercoaster ride, their journey promises excitement, surprises, and an undeniable thrill in the world of healthcare finances.

Legal Battles and CEO Extravagnce:

Step back and look at their stock chart—MSP has taken a major hit in value this year, and it’s not without reason. Surprisingly, digging into the company’s operations revealed some unpleasant surprises we hadn’t anticipated. It’s been a rough ride for them.

The company was just recently involved in a class action law suit led by recognized leader in shareholder rights litigation, Robbins LLP. The case revolved around MSP not providing essential information to investors transparently.

There were a number of claims mentioned, here’s a quick list.

1. MSP didn’t reveal there was an ongoing investigation by the SEC and federal prosecutors.
2. They gave out financial information to investors that was significantly wrong and deceptive.
3. When admitting they needed to fix their financial results, they didn’t reveal the full extent of the issues.
4. MSP couldn’t financially handle the claims they were assigned to manage by a major health and engaged in deceitful actions with said provider
5. The Registration Statement had lots of wrong or misleading statements and was poorly prepared.
6. Their Proxy also had false or misleading statements.

It all started on July 31, 2023, where The Miami Herald unveiled significant revelations. Stating the CEO John H. Ruiz has been living quite the lifestyle buying several waterfront mansions in Miami, even an entire Boeing passenger jet.

It’s not surprising the Ruiz’s lifestyle was so extravagant considering LifeWallet was once valued at more than $32 billion, but as you can see the company is now worth a small fraction of that. That said, Ruiz’s expensive lifestyle would be tough to continue.

Then again, on August 1, 2023, the Company made disclosures to the SEC (Form 8-K), confirming The Miami Herald’s findings. The stock took another substantial hit, dropping over 12%. Adding to the unfolding drama. After that, a substantial $67 million lawsuit was filed against the Company on the same day, resulting in an 18% plummet in the stock price.

The narrative continues on! On August 17, 2023, MSP acknowledged a notification letter from Nasdaq’s Listing Qualifications Department. They confirmed the Company’s non-compliance with Nasdaq’s Rule 5250(c)(1) due to a delayed Form 10-Q filing for the period ending June 30, 2023. This revelation caused a 19% stock price drop over two days.

With that said, we’ll bet you’re seriously wondering how could this company could possibly see recovery (pun intended) after all these allegations were laid out.

What happened:

Surprisingly enough, it seems Robbins LLP just recently lost the case against MSP and there was an announcement made on September 13th, 2023 about it. All those allegations have vanished into thin air. It’s baffling how a company with so many strikes against it can seemingly wrap things up so quickly. The whole situation leaves us questioning what’s really going on.

Since the announcement the other week, the company’s valuation has skyrocketed, at some points even peaking at an increase of over 400%. Naturally with that kind of trading action, it’s no surprise day traders are getting in on the action. MSP is trending all over Twitter amongst notable users like @timothysykes, @stockplaymaker1, and @AngryRed316 talking about it.

At this point, it looks like investors are basing their trades more on chart patterns and less on the company’s solid financial footing. MSP didn’t deliver great news in its latest earnings report, showing quite a large net loss of over $400 million. It’s quite likely the allegations had a role to play in this financial blow. The real question is if MSP can get its act together, start making real profits, and avoid a chapter 11. Either way, we’ll continue to follow along to see how things pan out!

We will update you on LIFW when more details emerge, subscribe to Microcapdaily to follow along!

Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.

Picture geralt by from Pixabay.com

FingerMotion, Inc. (NASDAQ: FNGR) continues to gain traction in recent months,  gaining over 500% since June 9th, 2023 this year. If you’re reading this now, you’re likely eager to understand the reasoning behind it. Based on their latest announcements, there are no dramatic changes fundamentally to warrant such price action. Yet their stock continues on a significant upward trend. From what we’ve seen, it appears to be the force of retail investors banding together to combat against manipulation, potentially creating the ultimate short squeeze.

Thoughts from Retail:

As per retail investors and a notable Twitter user known as HAMShortkiller, there is widespread concern regarding potential manipulation within FingerMotion. The chair of the U.S. securities stock exchange, Gary Gensler, is facing increasing criticism from investors who assert that the SEC tends to overlook white-collar crime allegations. To see what the fuss is all about, feel free to look into this video Kristen Shaughnessy shared on Twitter.

A lot of the commotion is around stock manipulation and malpractice by notable hedge funds. One user, BigC commented on the post above, “$40BB shock to the system. At what point does Jefferies realize they aren’t stopping the $FNGR deluge & mitigate losses? Or do they just roll over & become a Melvin Capital & let themselves implode? Unlike Melvin-there won’t be any Citadel to write them a $10BB check”.

Subscribe to Microcapdaily.com Right Now by entering your Email in the box below. 

To better your understanding of fundamental tactics, we’ve provided a brief overview below. Naturally, no investor tolerates manipulation. The AMC and GME events were an initial testament to the strength of retail investors and their determination to resist such actions. Although early stage, it appears FingerMotion is following a similar trend, and more hedge funds could be in for a rude awakening as more investors join in on the retail army.  

The SEC on its way to protect retail investors
byu/Ren3666 inwallstreetbets

Before we jump into the tactics, it’s important to note that HAMShortkiller also shared a post about previous malpractice back in 2009, which highlights the story behind Rocker Partners and Overstock.com (NASDAQ: OSTK). There’s an important Vimeo at the bottom of the article, explaining all the major details of what happened and how these practices work. While this article is from over a decade ago, the user suggests some of the exact same practices are happening today with FingerMotion. Practices such as a “Bear raid“.

Exploring Stock Manipulation Tactics:

Hedge funds have a bag full of short shares at their disposal, letting them play with a stock’s price using tactics like short-ladder attacks. They go heavy on borrowed shares to bet against stocks, especially when the demand is high, stirring the stock prices. Strangely, these moves aren’t illegal or firmly tackled by the SEC yet, raising eyebrows on their potential manipulation.

Bear Raid:

Short sellers can strategically utilize both traditional media and online discussion platforms to spread negative narratives about the target company. Through leaked information to journalists, bloggers, and discussion boards, they aim to create a broad negative image.

This orchestrated use of media is geared towards sowing doubt and fear among investors, employing sensational headlines, speculative reports, and exaggerated claims to induce panic selling and drive down the stock price.

Social media platforms play a crucial role in rapidly amplifying these negative narratives. Short sellers and their networks leverage these channels to spread rumors, creating a chain reaction of panic selling and significant stock price volatility.

The collaboration between short sellers and the media seeks to fulfill a prophecy of fear, prompting sell-offs that benefit the short sellers. It’s essential for investors to critically evaluate information, considering multiple reliable sources, and to be discerning of sensationalized narratives, particularly those propagated on online discussion platforms. Verifying information from credible sources is vital to avoid falling prey to orchestrated attempts to manipulate stock prices for personal gain.

Off Exchange Trading:

Hedge funds and market makers engage in off-exchange trading, allowing them to trade and swap stocks on foreign exchanges without the need for price disclosure. This practice involves manipulating the circulating supply by not accurately reporting transactions, a significant challenge the SEC is working to tackle. Despite efforts to introduce D-Limit orders for enhanced transparency, hedge funds and market makers present resistance.

Naked Shorting:

Stocks like $AMC and $GameStop have experienced an abundance of failure-to-deliver (FTD) orders, often a result of ‘short parties’ lacking the underlying asset. Retail investors have highlighted the presence of synthetic shares, known as naked shares, in the market. Naked shorting, though made illegal after the 2008–09 financial crisis, persists due to regulatory gaps and discrepancies between trading systems. The mainstream exposure of this practice raises concerns, emphasizing the need for retail investors to address these issues with the SEC.

A Community Against Market Manipulation:

We’re continuing to see efforts to expose malpractices in the stock market. Community members like HAMShortkiller are all over social media, shedding light on manipulation tactics driven by hedge fund partners. It’s refreshing to see investors sharing factual and positive articles regarding a stock’s performance or analytics. It’s clear the investing community aims to stay informed and united against market manipulation once and for all. 

The latest movie release, “DumbMoney” is a great example of the hysteria that occured a short time ago, but some claim it’s only the beginning. According to Stephmase22 off Twitter, nothing has changed to prevent the same kind of market manipulation that happened with AMC and GME. She’s insinuating the same kind of manipulation is happening here with FNGR and that it must be stopped.

The general idea is that if the SEC won’t take action, then the folks who are getting the short end of the stick will step up, by short squeezing the players behind the manipulation.

We will update you on FNGR when more details emerge, subscribe to Microcapdaily to follow along!

Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.

Picture by PIX1861 from Pixabay