How to Handle a Short Attack on a Stock You Own

Keith Fitz-Gerald Jun 03, 2015
67 

An anonymous individual writing under the name “The Pump Stopper” launched a vicious attack on Ekso Bionics Holdings Inc. (OTC:EKSO) yesterday that immediately pressured the stock and caused it to drop 24.28% to close at $1.36 a share on heavy volume. Understandably, that makes a lot of people nervous.

Here’s the thing, though.

If you’ve been in this game long enough, you know what to look for and why stuff like this isn’t a big deal in the scheme of things.

Today we’re going to talk about how to recognize a legitimate short versus a short attack and what to do about it, especially when it comes to a stock you may own like Ekso.

Here’s what you need to know:

First, let’s tackle the elephant in the room – stock manipulation.

Most investors are familiar with the phrase “pump and dump.” That’s what the SEC calls a form of financial fraud used to artificially inflate the price of a stock – usually a small-cap or microcap – for personal gain by distributing misleading and false statements. That’s the pump.

The dump comes later when the fraudsters suddenly sell their stock en masse and the price drops catastrophically, causing investors to lose their money.

It used to be done in so-called boiler rooms or small back offices like those depicted in the film The Wolf of Wall Street, but now it’s most commonly perpetrated via the Internet and chat boards. Pump and dump is so extensive that these kinds of stock scams may now account for an estimated 5-15% of all spam email.

It’s blatantly illegal.

The reverse of that is called “short and distort.” That’s what’s happening with Ekso.

Instead of buying the stock in question, the perpetrators typically short the targeted company first, then release theoretically independent reports and analysis that is little more than a thinly veiled smear campaign. Once the stock has fallen, the parties involved buy to cover, bank their profits, and hopefully disappear.

This, too, is illegal, but that doesn’t change the fact that it happens all the time.

Sadly, the SEC is totally outclassed and seemingly always a step behind. They simply don’t have the resources to detect, prosecute, and punish every short and distort artist out there.

Many people wonder how this is possible, especially today. It’s not as difficult as you would think.

TV personality Jim Cramer gave a hair-raising interview in December 2006 that was aired in March 2007, describing how hedge fund managers and others push stocks higher or lower at will, stating specifically that some hedge fund managers spread false rumors to drive a stock down.

“What’s important when you are in that hedge fund mode,” he noted at the time, “is to not do anything remotely truthful because the truth is so against your view, that it’s important to create a new truth, to develop a fiction.”

Then he outlined three ways to do that:

  1. Spread false rumors
  2. Drive futures
  3. Give information to reporters who would then spread the “news” giving it an air of legitimacy

So how do you recognize legitimate shorting versus a short “attack” or even a bluff?

There are a few giveaways:

First, real short sellers don’t hide behind anonymous Internet chat boards and cutesy names. They don’t have multiple email accounts to engage in rumor mongering. And they don’t have websites registered in Panama that have been through nine changes hosted on seven different name servers over the past eight years. That’s because guys like George Soros, Simon Cawkwell, Mark Cohodes, and Jim Chanos – some of the most famous legitimate and successful short sellers of our time don’t need to. They’re idea-driven.

Second, real short sellers don’t want attention. In fact, they want the exact opposite – not to tip anybody off so that they have an extended period of time to maximize their positions. “Short and distort” sellers typically use high volume activity to drive prices down quickly in their own self-interest rather than see them collapse under their own weight.

Third, real short sellers publish factual information if they publish anything at all. Short and distort artists string together information that may or may be germane, let alone accurate under the guise of personal opinion that makes it hard to prosecute. They rely on selected information that is taken out of context or partial truths and inference. Ethics have very little to do with how they play the game. Their sole interest is in creating short term angst that causes investors to bail so that they make money buying depressed shares.

Obviously, this is not pleasant for anybody. Short and distort artists prey on panic. They have a demoralizing effect that can hurt not only individual investors but also the companies they target by slowing down financing and growth.

Believe it or not, though, there is a silver lining.

Sometimes short sellers get burned by their own mojo. If enough people come back into a stock, that pressures the short sellers who are then forced to cover at higher prices in something called a “short burn.” The irony is that many times it’s their own actions that light the fire.

The other thing to think about is that if you buy off on the targeted company’s potential – in this case Ekso – a short attack can be a super time to pick up shares that are temporarily “on sale.”

Speaking of which…

What’s Happening with Ekso

Less than an hour after I learned about the story, I was on the phone with Ekso’s CEO Nathan Harding and CFO Max Scheder-Bieschin. As you might imagine, I share your concerns given the very serious nature of the allegations being made. So, I was keen to speak with them.

I learned that the company will be issuing a point-by-point rebuttal to The Pump Stopper and that it will be posted on Ekso’s website as soon as possible. That way all interested parties – investors and “The Pump Stopper” alike – will have access to it at the same time.

This is absolutely consistent with what you would expect from a public company in Ekso’s position and in full compliance with SEC regulations, including FD, Rule 10b5-1 and Rule 10b5-2 governing the release of material non-public information.

The Way to Defeat “Short and Distorts” Is by Keeping Perspective

I’ve studied Ekso carefully, reviewed competitive offerings carefully, visited headquarters and, talked extensively with C-level executives, Ekso users, and even health care professionals.

To be very clear, I saw and still see tremendous potential ahead.

Short attacks like this are unfortunate and gut-wrenching. But they come… and they go.

“The Pump Stopper’s” allegations seem credible at first glance, but many of them don’t make sense if you stop and think about them logically for a minute.

Take the allegation that Ekso’s testing centers now prefer competitive products, for example. These are the top treatment centers in the world. It’s not in their interest to be exclusive with any manufacturer… not Ekso, not ReWalk, not Cyberdyne. You could easily substitute their names instead of Ekso’s and instantly those companies would be on the defensive.

Instead, what these treatment centers want is to evaluate and use as many options as possible. They have a medical obligation to their clients to test any device with potential. That way they can offer the broadest spectrum of treatment.

Ekso has never communicated a goal to be the only one there, nor have they claimed that Ekso suits work on all patients. That’s an inference “The Pump Stopper” hopes you’ll make so you’ll hit the sell button and make HIM money.

Or how about the list of employee defections?

People come and go all the time, so employment ebbs and flows with every startup, not just Ekso. This isn’t unusual if you understand how Silicon Valley startups work.

Further, according to CFO Max Scheder-Bieschin, many of those same people are actually working at Ekso again at this very moment. The Pump Stopper doesn’t want you to know that because that interferes with HIS agenda.

Obviously, this situation is a long way from over, which is why I am watching it carefully. There may be more selling ahead. In fact, I’d bet on it.

But what I wouldn’t do is abandon ship in a panic.

We’re talking about a stock that’s between $1 and $2 a share. It’s not like we’re talking about Netflix at $624 a share here. So your downside is limited.

That said – to be really blunt – if you cannot handle the loss of $0.37 a share, you haveย  no business investing in the stock market let alone a startup company like Ekso. Investing is risky and all investments can lose money. That’s why youย  never, ever invest money in any stock that you can’t afford to be without.

Further, if you’ve taken emotion out of the equation and properly position sized your investments, including Ekso, in keeping with the Total Wealth Tactics we’ve discussed many times, you’re not going to blow up your portfolio if something goes wrong.

And, finally, keep my original instructions in mind. Ekso is a long-term investment that will be volatile. Startups always are. That’s why my original instructions were to average down if the stock fell to $0.75 per share. Barring any change in the material information that Ekso releases shortly regarding The Pump Stopper’s allegations, those still stand.

Still, I know this is tough. Nobody likes to see a stock they believe in get clobbered for any reason… but keep it in perspective.

Microsoft is on track to do $99.3 billion in global revenue for 2015. In 1976, it booked $16,005.

Many times stocks that are ultimately big winners feel frail in the beginning.

Best regards,

Keith

67 Responses to How to Handle a Short Attack on a Stock You Own

  1. Barry says:

    very glad I had that $ 1.05 lowball bid in I filled, very glad u tought me to have a plan so sold some high , rebuy some low, keep a core position is my plan & I am glad I can sleep at night & as u taught kept emotion out of it & did waiting for u to clarify matters

    I had asked via contact link for the above info on the article sent to the editor, PS u have great customer service

    while I am not sure if I am intelligent enough at the heat of the moment to fully understand and apply all u wrote when a situation arises, I will reread this & original article in ? to try and understand your points better

    thanks for the above & Please keep us well informed

    so far today down about 7 cents on 2 million shares, by this time yesterday was 8 million at least traded

    Thanks Much, Barry

    • Barry says:

      Kieth, BTW there are currently 64 comments to the article, Ranging from glad i got out to bought more as something looks strange in this article and everything in between

      The Best to ya, Barry

    • Keith says:

      Way to go Barry. Lowballs are one of my favorite tactics and they’re great for picking up stocks you want to own at a huge discount. Many investors and traders underestimate how effective they are much to their own detriment so I’m thrilled you swooped in.

      Best regards and thanks for being a member of the Total Wealth Family, Keith ๐Ÿ™‚

  2. Barry says:

    HI KIETH

    Esko responded today on their website under FAQ in the investors section

    for you & your readers

    http://ir.eksobionics.com/faq

    its a few paragraphs long, directly responds to some of the allegations

    of note

    it takes issue where such expression is published anonymously and laden with false, misleading and selective information and when, as the Company believes is the case, such expression is intended to drive down the Companyโ€™s stock price. Based on the allegations in the article, the Company believes that the author either purposefully ignored or failed to learn the true facts about the Company, its products and the developments that have occurred since the Company became public in January 2014.

    To date, the Company has not been contacted by the Securities and Exchange Commission or the Department of Justice regarding Mr. Gottbetter. The Company is not aware of any Securities and Exchange Commission or Department of Justice investigation regarding the Company or transactions in its securities.

    OK I Replied enough

    Barry

  3. John Celleir says:

    I just increase my holdings by 2x!

    • Keith says:

      Way to capitalize on chaos, John!

      Best regards and thanks for being a part of the Total Wealth Family, Keith ๐Ÿ™‚

  4. Rob says:

    Something was very obvious of a significant drop, yet EKSO is prominently sharing at a forthcoming summit their status. An entity in development as they are is pragmatically handling responsibly. The future has endless possibilities, yet investment is up to those individuals who are willing to risky vs reward. Those placing false statements should be brought forth for legal review.

    • Keith says:

      Hi Rob.

      That catches my attention, too. And, like you, I sure hope whoever is behind this is pursued appropriately.

      Best regards and thanks for being part of the Total Wealth Family, Keith ๐Ÿ™‚

  5. Jennifer says:

    Thanks for the comments Keith. Perspective is key here. My two huge red flags were that the “Author” is anonymous and secondly his disclosure of holding the stock short. This information before the article even started. I picked up some more myself based on your track record and very thorough stock picking analysis.

    Remove emotion and study the facts.

    • Keith says:

      You nailed it and, of course, thanks for the kind words.

      Start ups and early stage companies are especially tricky in the early going but the facts will always come through eventually as I believe they will in this situation.

      Best regards and thanks for being part of the Total Wealth Family, Keith ๐Ÿ™‚

  6. H. Craig Bradley says:

    This whole episode adds some new meaning to the old phrase: ” Taking it in the shorts “.

  7. Bill Stapp says:

    Thanks for clarifying this Keith.I picked up just 1000 shares last week and looks like a great company for the long haul.I like the way they are not falling all over themselves being defensive.Might pick up another 1000…please keep us posted.

    Thanks.

  8. Bob says:

    Thanks for the update Keith. I picked up some more yesterday. You have bee solidly behind this company so I wasn’t really worried by the drop. I’ll hit it again if more sellers panic.

    • Keith says:

      Craig, Bill, Bob, thanks for the kind words, for your diligence, and for your forward thinking.

      What’s happening now may be a nightmare for the weak money, but it’s absolutely the path to profits for savvy investors and traders like you guys. Tactics and truth will trump panic and nonsense every time.

      Best regards and thanks for being part of the family, Keith ๐Ÿ™‚

      PS: your pun made me laugh, Craig. Indeed!

  9. bob says:

    It is extremely concerning that the company chose not to reply to the many allegations made in the Seeking Alpha article many of which it should have been to easily rebut if they were, in fact, untrue.

    Personally I feel that the market is clearly not properly informed and that the company has failed in its duty to its shareholders to properly inform the market.

    I am NOT short, having taken profits a few weeks ago, but I am reluctant to become long in the circumstances.

    • Barry says:

      BoB, as i noted earlier above

      Esko gave an initial defrnsive response today on their website under FAQ in the investors section

      http://ir.eksobionics.com/faq

      All the best Barry

    • Keith says:

      Hi Bob.

      I want to offer a special shout out to you for what you posted. It shows something really terrific…namely that opinions and perspectives matter. Not every investment is ideal for every investor and there’s absolutely nothing wrong with sitting this one out. Sometimes it takes more courage to do that than it does to pile in.

      Best regards and thanks for being part of the Total Wealth Family, Keith ๐Ÿ™‚

  10. Sheila says:

    Thank you for keeping us posted on what is happening with EKSO. You are so on top of things.
    If it goes down any more will certainly buy more.

    • Keith says:

      Hi Sheila and thanks for the kind words.

      I will always try to do my best. But, keep in mind that even I am not infallible which is why you want to constantly evaluate everything you see and hear to see if it fits your personal situation, even when it comes from me!

      Best regards and thanks for being part of the Total Wealth Family, Keith ๐Ÿ™‚

  11. Dave tjardes says:

    Will ekso get up and grow again or do I bale and take a loss (a big loss )

    • Keith says:

      Hi Dave.

      As much as I wish I could answer that, I don’t understand your personal situation so it would be terribly inappropriate (not to mention illegal) for me to do so.

      That said, perhaps you’d find it helpful to re-read this article on using the Ultimate Trailing stops as part of your decision. Sometimes losses, as painful as they can be, may be a good thing under the circumstances.

      With regard to when Esko will grow up, my take is that we won't have much longer to wait. The company continues to build momentum in new markets, is entering the industrial space, and still tapped into the much larger Human Augmentation Trend.

      I think Ekso will be a very different company a few years from now than it is today and that many people will be surprised by how fast it grows when it hits critical mass.

      Best regards and thanks for being part of the Total Wealth Family, Keith ๐Ÿ™‚

  12. Ray says:

    Thanks for the update!

  13. Dale says:

    Thanks for the update Keith, I took advantage of the decline to buy another 100 shares at $1,28. That should be great for the dollar cost averaging technique. Thanks again, especially for the reinforcement of the company.

    • Keith says:

      Your welcome Ray and Dale. And, thanks for the kind words.

      Best regards and thanks for being part of the Total Wealth Family, Keith ๐Ÿ™‚

  14. Jim says:

    How do you even short a sub-$2 stock. Most brokers don’t allow it.

    • Keith says:

      Good question Jim.

      Many brokers will commonly tell people that they cannot short stocks below $5 a share but, believe it or not, that’s not a FINRA nor SEC restriction. last time I checked, it was up to individual brokerages to establish their own short lists.

      Best regards and thanks for being part of the Total Wealth Family, Keith ๐Ÿ™‚

  15. dave says:

    The problem with what is going on with this short and distort clown that has trashed ekso is that he is holding the cards now until either he decides different or until someone else or a group of someone elses with more money blow him out of his positions !!! When these short and distort clowns hi jack a stock like ekso often he does it because he knows he can bully the mom and pops that often invest in a stock like this one and he can sit on his short and even naked short the stock because he has more money than the mom and pop investors and he can sit on his short position and even add to his position and drive the s tock even lower there by causing so much pain for the average mom and pop that they capitulate !! If this clown has the capital he theoretically could drive this stock to 1- cents per share and then sit on it until he has bled everyone dry however long that takes and then at some point cover and take his ill found riches on to the next victim . I am not saying that that will happen here but I have seen it happen many many times over the decades to many promising micro cap fledgling companies
    Most of the crooks that do this short and distort know that they can do it all day long and get away with it and they will always land on their feet !! The only time I can remember it backfiring recently was back a few years ago when that well known short and distort artist got busted for putting out fraudulent reports & shorting and naked shorting silvercorp metals and the company went after him and he was prosecuted for fraud !!!

    • Keith says:

      Hi Dave.

      You raise some really intelligent and well-reasoned points. My experience is that most of the short and distort artists don’t have either the chutzpa or the financial resources to hang on for long. Legitimate shorts with established strategies are a different animal. I have no idea which one is at work here but the “clues” suggest the former rather than the latter.

      Best regards and thanks for being part of the Total Wealth Family, Keith ๐Ÿ™‚

  16. SKIP says:

    KEITH, THANK YOU VERY MUCH, FOR YOU ARTICLE. IAM A NEWBIE INVESTOR AND WAS ONE CLICK AWAY FROM DRINKING THE KOOL AID. YOU SAVED ME FROM MY IN EXPERIENCE!!!!! THANKS FOR THE LESSON!

    SKIP

  17. John Tennant says:

    This is very timely feedback for us, Keith. I went through a short attack on Questcor in 2012 and it was not fun, indeed it was pretty awful as the stock lost 50% of its value. The attack went on for a few months, with more short attack articles being published during that time. Ultimately, QCOR’s consistently great results just made it too dangerous for the shorts and the stock shot up. Of course, QCOR was subsequently bought out at a good premium. Long story short, by holding on and adding to my position during the attack, I actually tripled my total investment, the best return on a stock in my long investing life. Let’s hope EKSO can similarly beat back this attack and make us all a bundle. LOL

  18. rick says:

    Thanks Keith for the update! I purchased more at the bottom!

    • Keith says:

      Thanks for the kind words and you’re welcome, Skip, John and Rick.

      It’s important to remember that we’re all born with common sense; it’s just bred out of us as adults. Situations like this are driven by emotion so any introduction of logic is usually a good thing.

      And, John – thanks for sharing your experience. People forget that simply staying put can result in some terrific upside as long as your conviction to see the fight through to the end remains intact.

      Best regards and thanks for being part of the Total Wealth Family, Keith ๐Ÿ™‚

  19. Patricia Romansky says:

    I need an answer please. How in the world did we ever get to the point that C.E.O.’s of large companies, are also sitting on the shareholders board as President. You think anyone is going to care about the employee’s. Hell no, it’s his bonus
    I’m on to another trick, it’s coming too. Thank-you in advance.

    • Keith says:

      Hi Patricia.

      I think the irony is tremendous given the fiduciary responsibility. As you point out, there are potentially huge conflicts of interest. My own take is that this will continue as long as bonuses are tied to immediately vested stock rather than long-term positions that line up with shareholders.

      Best regards and thanks for being part of the Total Wealth Family, Keith ๐Ÿ™‚

  20. Warren says:

    Thanks so much for the quick update. I didn’t sell but was a little nervous. I’m more confident in your firm and will appreciate your further updates.

  21. charles pierce says:

    thanks for the great communication. no service i deal with communicates as often, as well, and openly. appreciate it greatly and it builds trust. thks, chuck

    • Keith says:

      Warren, Charles – you guys are great. Thank you for the kind words.

      I try very hard – indeed my entire team does – to make sure we are constantly out there on your behalf, communicating clearly and effectively. So it’s super to hear that comes through!

      Best regards and thanks for being part of the Total Wealth Family, Keith ๐Ÿ™‚

      PS: don’t mind the nervousness to much, Warren. Instead, learn to harness it. Famed trader George Soros, for example, relies on pain in his gut to know when something is wrong with hist portfolio. As he puts it, his decisions are really a combination of “theory and instinct.”

  22. H. Craig Bradley says:

    WHEEL OF FORTUNE

    Small stocks listed commonly on the “pink sheets” or Over-the-Counter” Market are generically known as “penny stocks”. By nature, these are young companies with minimal earnings history and too small to qualify for listing on the NASDAQ or NYSE. As such, they have a high degree of risk and are more volatile than large company stocks. In compensation for these elevated risk factors, the potential reward is much higher- hence their appeal.

    It is truly a case of buyer beware but its a niche investment that an experienced trader can potentially be richly rewarded in. The potential for market manipulation or fraud is also much higher on pink sheet listed stocks, most generally. High risk equals potentially higher rewards, but not always. Time to spin the roulette wheel one more time?

  23. Rick Stauts says:

    I just bought 3200 more shares at .50 per share less than my original investment. If this thing runs, I am going to do well. Thanks for the article Keith.

  24. Ronald Bowen says:

    Thank you for this article. I follow my stock on Seaking Alfa for this very reason. I have saved the article from the Pump Stopper as a prime example of what folks like this do. I am counting on some lower numbers to add.

    • Keith says:

      Hello Craig, Rick and Ronald.

      Some really terrific points from you guys. Thanks for sharing; it’s a huge part of what makes Total Wealth such a great place to be. I love the fact that all three of you firmly grasp the concept of a tactical swoop. Buy low and sell high is how it always works best.

      Best regards and thanks for being part of the Total Wealth Family, Keith ๐Ÿ™‚

  25. Anne Marie Anderson says:

    Thank you Keith for providing this update. As usual, you are right on top of sharing information with your readers for the stocks you recommend.
    I am becoming a more wise investor, so I used the opportunity to pick up some more shares on sale.
    All those involved in such illegal activity should be prosecuted and fined through the “shorts”!!!

    Keep us posted. Thanks again.

    Anne Marie Anderson

  26. Paul Davey says:

    Hi Keith,

    I’m in Australia and can’t trade 24 hours a day, I need to sleep sometimes. I was awake when Pump Stopper hit the air and he got me. I had some doubt, simply because I couldn’t believe you could be so wrong but, I put in a sell order anyway to be safe and went to bed before your email arrived. I am now out at $1.37, with a BIG loss for me, and now deciding at what point to get back in. I will now leave my phone on and wait for your comment before acting. An expensive lesson, but lesson well learnt.

    Regards

    Paul Davey

  27. clint says:

    Thanks for the heads up, Keith. When I checked EKSO yesterday it was below 1.20/shr – of course I felt emotion (panic) but stuffed it. I made the decision to buy more about 90 minutes later @1.14/shr. I won’t complain about my position, when it spiked early April I sold about 30% of my stake to recoup over 50% of my investment when it hit 2.25/shr (bought twice, first at 1.46/shr and again at 1.15/shr). My only regret is that I could have “played” the market twice and sold more before a couple of decent dips and bought back at a smaller entry (but I’m not losing sleep over it). Glad to see a rebuttal and a decent rebound today! May be a bumpy ride but I’m willing to buy/sell with the ups and downs -if I play it right I can build a core stake for for a minimal investment and then look for the free trade w/out having to sell half of my position.

    On another note, what’s your position on AZUR? I bought at $18/shr and set my stop for 14.75 (about 18%).

    Very Respectfully,

    Clint B.

  28. William Forbes says:

    Pump Stopper’s article reminded me of a letter my mother received a few years back from someone in Nigeria claiming to need her assistance to pay for a trip home to tend to a sick relative. The price drop did allow me to pick up more shares at low prices. Here is text taken directly from http://www.pumpstopper.com:
    “You should assume that as of the publication date of our reports and research, The Pump Stopper (possibly along with or through our members, partners, affiliates, employees, and/or consultants) along with our clients and/or investors and/or their clients and/or investors has a short position in all stocks (and/or options, swaps, and other derivatives related to the stock) and bonds covered herein, and therefore stands to realize significant gains in the event that the price of either declines. We intend to continue transacting in the securities of issuers covered on this site for an indefinite period after our first report, and we may be long, short, or neutral at any time hereafter regardless of our initial recommendation.”
    Kind of like yelling “Fire!” in a theater. Perhaps the folks at Ekso might like to pursue this.

  29. Roland Vreeken says:

    I’m a new investor, with somewhat limited funds. I knew that ‘penney stocks’ were risky, so I figured I would never buy anything under $2. When I read your confidence in Ekso, I looked at it, at it’s history and it was on the way up, so I stuck in my toe for 100 shares @ $2.10. Wow ! As I watched it I found that I had bought at the absolute high point either before or since. But it’s only a ‘small’ amt. so I decided to hold and see if it met up with your confidence. I am a patient person and will not invest what I cannot afford to lose. I hope that my only regret with Ekso will be that I did not buy enough. This article and the comments have been very helpful to me. Thanks

    • Keith says:

      Good morning Anne, Paul, Clint, William and Roland.

      Thanks so much for the kind words and for sharing your perspectives. Doing so is what makes Total Wealth a great place to be and fun, too.

      I’m thrilled because it sounds like every one of you has a firm grasp on the tactical opportunity to buy when a stock you want to own swoons. That’s fantastic because situations just like this one can lead to some fabulous returns. Obviously, it’s too early to tell but all the variables we know from research and experience are here.

      Best regards and thanks for being part of the Total Wealth Family, Keith ๐Ÿ™‚

  30. Houyhnhnm says:

    Bought shares at $1.41 and $1.51. Hope to sell most of them soon near $2 as I’m more interested in playing the swings than waiting for the next MSFT.

    Does anyone publish timely alerts on these short attacks? I would like to make some money by squeezing these scumbags.

    Houyhnhnm

    • Keith says:

      Hi Houyhnhnm.

      An alert focused solely on short squeezing these guys is a GREAT idea. It’d be interesting if they can stand the heat of the fires they create. I know there are some focused around open short interest, but those don’t really provide the precision I think you’re talking about. I’ll look into it.

      Best regards and thanks for being part of the Total Wealth Family, Keith ๐Ÿ™‚

  31. P Ashmore says:

    I have followed Keith for several years now and have done quite well with many of his recommendations.

    I must state right up front that I do not currently own EKSO, nor have I ever, but they are (were) definitely on my radar. This is why I am very interested in these recent developments and the current buzz surrounding the company.

    The bottom line is this: the market is expert at confiscating cash. Your retirement cash. They have been at it for quite a long time, and they know what they are doing. I know because I have actually been on the losing end of two of these deals over the years. One was a legitimate (or illegitimate, whichever way you want to look at it) pump and dump scheme โ€“ it was such a great story!! โ€“ and in the other one there actually was some chicanery going on behind the scenes at the company (which of course no one knew about at the time.) Were my losses on both of these a direct result of my own stupidity at the time? Most definitely. Am I inclined to repeat the same mistake again? Not this time!

  32. B. Clayton says:

    There has been enough said on this issue. For my money (excuse the play on words), I just remembered your original analysis on EKSO Keith, and I agreed with it so I just used the drop to buy more., and if it goes lower, I’ll buy even more.

    Nevertheless, someone should nail the A/H that did this.

  33. Mike Ford says:

    Picked up more on a low ball order. Saw this for what it was… (yawn) It would be great to see the SEC catch this turkey and deep fry him;)

  34. Ken says:

    What about this:

    NEW YORK, June 4, 2015 /PRNewswire/ — EKSO Bionics Holdings, Inc. (OTCBB: EKSO) a designer, developer, and seller of wearable robots or exoskeletons for use in the medical, military, industrial, and consumer markets, has recently received negative publicity with its financial partner Gottbetter Capital having its top executives arrested for stock price manipulation. Adam Gottbetter, the founder of Gottbetter Capital was arrested on charges of stock manipulation by the SEC with a litigation filed late last month. With EKSO’s cash running out and a high burn rate, it is questioned whether the company will be able to raise cash to continue operations or face bankruptcy like in 2012.

    • Scott Kegel says:

      Keith

      I saw the drop and decided to significantly up my stake in EKSO. What is the situation with Adam Gottbetter getting arrested for fraud and does that have anything negative affect on EKSO moving forward?

  35. Edward says:

    The analysst at http://smallcaptraders.com/ puts a strong SELL on EKSO. He says they are running out of money by next year and will probably go bankrupt. He says a lot of other negative things which may or may not be true. He implies that Gottfried is still involved with EKSO. If the analyst is not truthful, can he be stopped or even prosecuted? He is certainly not helping the stock price and I am presently losing a fair amount.

  36. Peter says:

    Hello Keith,
    I did a projection for the likely future trend for Ekso Bionics and the share should start rallying from August.
    Unfortunately, daily stock data is only available from January 17, 2014. Normally I need 4-5 years of data.
    However, even so the indicated trends are usually correct only the scaling may be slightly off.
    If you provide an email address where I can attach the forecast I will forward it.
    Regards, Peter

  37. John Tennant says:

    Everyone holding on to EKSO and adding to their positions (like me) should just be aware that short sellers often attract more short sellers who jump in when the stock starts to go up again. They can be like flies attracted to sugar, and they may well swarm on EKSO for a while until they find another short attack target somewhere else. The result is a lot of positive and negative price swings during the attack. Don’t lose faith and bail out if you trust the future of this stock.
    Just some friendly advice from someone who has seen this all before during my 40 years of investing….

  38. Kathy johnson says:

    Dear Keith,
    When I noticed ESKO had a big drop. I didn’t think twice. I saw it as an opportunity and bought more. I’m so pleased I did not let emotion control me. It was my intention to purchase more and I took the opportunity. Thank you, thank you, because you are teaching to rise above the emotion and of course to watch position sizing. My mind had already decided it was a good company, worthy of my money. This was a nobrainer. You deserve the credit! I did learn another thing. I will put in lowball orders when I would like to purchase more. Gives me freedom!
    Till later,

  39. Norm pulliam says:

    Keep those cards &letters coming

  40. Don Klinger says:

    I read all TOTAL WEALTH info sent to me and enjoy all comments. Again in following your comments I have purchased 50% more of EKSO. Since my first purchased I have received other requests to join other people under your banner of TOTAL WEALTH. To follow any will be based on return on ESKO.

  41. Tim Retter says:

    In response to Rewalk walking faster: If speed is your only metric, with out surrounding evidence, you might be right. In the video your talking about, the guy in the Rewalk Suit might have had 100 times the experience. The Ekso unit might have just been on a slow training mode as well. The expensive cost of Ekso comes from the much greater technology it uses. If you actually take a look at Ekso’s patents vs Rewalk patents; it makes the Rewalk Patents look like they were written by a little kid. Ekso physics is FAR superior, which I can tell you as an undergrad physics student. The Rewalk system is essentially 2 joints and a balancing system. Ekso mimics a real body much better. The US government would have contracted Rewalk and not Ekso if they thought it was a better system.

    Furthermore, Ekso makes suits with out batteries designed for construction workers that use counterweights.

    Spinal cord injury is only a very small part of Ekso’s market. The short attack on Ekso talked about stem cell technology as a reason not to invest. They are simply looking for anything possible to say to discredit a clear winning technology/company.

  42. Lawrence Nichols says:

    I read your explanation about EKSO in your June 7th e-mail, but I have not seen it included in any of your stock picks since then.

    Have you recommended that we sell?

    Or, have I missed an e-mail from you about EKSO since June 7th.

    Thanks for your help and expertise.

    • William Dahl says:

      Hi Lawrence,

      Keith is still bullish on Ekso and will be writing about the company again soon. In the meantime, here’s an article on Ekso, released today on Seeking Alpha, that may answer your questions about the company.

  43. Martin Cohen says:

    EKSO continues to decline. What is the outlook?

  44. Fir says:

    Bought the stocks at 1.13 and then again at 1.05. Am expecting construction companies to start purchasing Ekso units later this year as well as some kind of FDA approval by end of the year. With that hopefully it will drive this undervalued stock up to where it should rightfully be.

  45. Waldron says:

    EKSO reported its 2nd quarter 15 earning results today 30 Sep 15. So where do you see this company at this time and for the foreseeable future?

  46. Travis says:

    He just did the same thing to APDN

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