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MSP Recovery (NASDAQ: LIFW) in the Spotlight: Legal Battles, Luxe Living, and Stock Surge

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…

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4 weeks ago

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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.

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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!

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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

 

The post MSP Recovery (NASDAQ: LIFW) in the Spotlight: Legal Battles, Luxe Living, and Stock Surge first appeared on Micro Cap Daily.

The post MSP Recovery (NASDAQ: LIFW) in the Spotlight: Legal Battles, Luxe Living, and Stock Surge appeared first on Micro Cap Daily.

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An Award Announcement With a Dash of Market Commentary

With words like "Schneider’s dedication to educating others about stocks is unparalleled," Traders World Fintech Awards honors me in the most amazing way…

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21 mins ago

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October 17, 2023

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With words like "Schneider's dedication to educating others about stocks is unparalleled," Traders World Fintech Awards honors me in the most amazing way possible.

I have always been a teacher, whether in Special Education, or on the floor of the NY Commodities Exchanges as a chartist to my fellow traders, or in the last two decades, with MarketGauge and our clients.

Financial literacy might be one of the most underrepresented curricula in the US, if not the world!

My Economic Modern Family was created to fill the gap between basically no financial literacy taught in schools and beyond, to how folks can learn about stocks and the markets in a fun, tangible, and incredibly accurate way.

In yesterday's Daily, we covered the Family and how there is no better time to look at the charts on a weekly timeframe.

Today, the Family shifted.

  • Small Caps (IWM) and Retail (XRT), a.k.a. Gramps and Granny, woke up while Sister Semiconductors (SMH) fell.
  • Transportation (IYT) tested the top end of the range we discussed, which is between 220–235.
  • For XRT, we can say the range to watch is 57–65.
  • Small Caps or IWM needs to hold 170 and clear overhead resistance at 180.
  • Biotech (IBB) has been stuck in time for the last four weeks. The best range to watch would be 120–125.
  • Prodigal Son Regional Banks (KRE), except for a couple of rallies and sell-offs, sits between 40–45.
  • Bitcoin, a new member of the Family, was featured over the weekend in our Daily. As it holds 28,000, we anticipate it can climb to $31,500.

And let's not forget commodities.

In my recent interview with Kitco, I warned, "Higher bond yields could already be taking their toll on the US economy, and weak economic growth and stubborn inflation continue to create a stagflationary environment, which would be bullish for gold."

In another recent Daily, we discussed DBA, the Agricultural ETF, and DBC, the commodity index ETF.

"Over 21.80, we would begin to think more bullish in agriculturals. DBC on the right, more oil and precious metals focused, also underperforms the SPY. That is surprising and supports a risk-on environment. Through 24.75 that picture changes."

Traders' World also wrote, "Her ability to connect with her students on a personal level, provide ongoing support, and foster a sense of community among her followers is remarkable."

And for that, I THANK YOU, my loyal readers! Because of you and your support, I won this incredible award!


This is for educational purposes only. Trading comes with risk.

If you find it difficult to execute the MarketGauge strategies or want to explore how we can do it for you, please email Ben Scheibe at Benny@MGAMLLC.com, our Head of Institutional Sales. Cell 612-518-2482.

For more detailed trading information about our blended models, tools, and trader education courses, contact Rob Quinn, our Chief Strategy Consultant, to learn more.


Get your copy of Plant Your Money Tree: A Guide to Growing Your Wealth.

Grow your wealth today and plant your money tree!

"I grew my money tree and so can you!" - Mish Schneider

Follow Mish on Twitter @marketminute for stock picks and more. Follow Mish on Instagram (mishschneider) for daily morning videos. To see updated media clips, click here.

Mish in the Media

Mish and Dale Pinkert discuss the disconnect between news and markets-and how to best invest right now in this video from ForexAnalytix's pre-market show.

In this video from CMC Markets, Mish shares her short-term forecast for USD/JPY and popular commodity instruments ahead of the US PPI announcement and September's Fed meeting minutes, with recent dovish comments from Fed officials suggesting a potential shift in the committee's policies.

Mish joins Business First AM to discuss the market reaction to the war in Gaza in this video.

Mish discusses what's needed for a market bottom on the Financial Sense Newshour podcast with Jim Puplava.

Mish takes over as guest host for David Keller, CMT on the Monday, October 9 edition of StockCharts TV's The Final Bar, where she shares her thoughts in the daily Market Recap during a day of uncertain news.

To quote Al Mendez, "The smartest woman in Business Analysis @marketminute [Mish] impresses Charles with her "deep dive" to interpret the present Market direction." See Mish's appearance on Fox Business' Making Money with Charles Payne here!

Mish covers bonds, small caps, transports and commodities-dues for the next moves in this video from Yahoo! Finance.

In this video from Real Vision, Mish joins Maggie Lake to share what her framework suggests about junk bonds and investment-grade bonds, what she's watching in commodity markets, and how to structure a portfolio to navigate both bull and bear markets.

Mish was interviewed by Kitco News for the article "This Could Be the Last Gasp of the Bond Market Selloff, Which Will be Bullish for Gold Prices", available to read here.

Mish presents a warning in this appearance on BNN Bloomberg's Opening Bell -- before loading up seasonality trades or growth stocks, watch the "inside" sectors of the US economy.

Watch Mish and Nicole Petallides discuss how pros and cons working in tandem, plus why commodities are still a thing, in this video from Schwab.

Coming Up:

October 18: Crypto Town Hall X Spaces

October 19: Live Coaching

October 20: StockCharts TV's Your Daily Five

October 23: BNN Bloomberg

October 27: Live in-studio with Charles Payne, Fox Business

October 29-31: The Money Show

Weekly: Business First AM, CMC Markets

ETF Summary

  • S&P 500 (SPY): 440 resistance, 429 support.
  • Russell 2000 (IWM): 177 resistance, 170 KEY support.
  • Dow (DIA): 344 resistance, 332 support.
  • Nasdaq (QQQ): 368 pivotal.
  • Regional Banks (KRE): 39.80 -42.00 range.
  • Semiconductors (SMH): 150 pivotal.
  • Transportation (IYT): 237 resistance, 225 support.
  • Biotechnology (IBB): 120-125 range.
  • Retail (XRT): 57 key support if can climb over 61, better.


Mish Schneider

MarketGauge.com

Director of Trading Research and Education

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South Korean regulator outlines steps to enhance digital asset legislation

The Virtual Asset Users Protection Act was passed in June without a sufficient regulatory framework, the head of South Korea’s Financial Supervisory…

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22 mins ago

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October 17, 2023

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The Virtual Asset Users Protection Act was passed in June without a sufficient regulatory framework, the head of South Korea’s Financial Supervisory Service said.

South Korea’s Financial Supervisory Service (FSS) is preparing regulations to supplement the Virtual Asset Users Protection Act passed earlier this year, according to local reports. New regulations should be ready by January, well ahead of the law entering into force, the FSS head said.

The South Korean National Assembly Political Affairs Committee conducted an audit of the FSS on Oct. 17, at which FSS head Lee Bok-hyeon responded to criticism that South Koreans were losing money on crypto “burger coins,” Korean slang for foreign-issued cryptocurrencies that are traded in South Korea.

The FSS will establish standards for listing procedures, internal controls, and issuance and distribution of virtual assets, as well as a “virtual asset market supervision and inspection system,” according to the South Korean press coverage of the audit. Lee said the coming regulations were being discussed with the Digital Asset eXchange Association (DAXA), which is made up of local crypto exchanges Upbit, Bithumb, Coinone, Korbit and Gopax.

Related: South Korea focuses on OTC crypto regulations as unlawful deals reach $4B

Lee said the legislation passed in June was lacking in regulatory detail. The law established criminal liability for violations, but, according to Lee, it did not give his agency sufficient authority. “If there is truly an act that amounts to manipulation of distribution volume through staking or unfair disclosure, we will consult with DAXA," Lee said. He continued:

“There are related systems in place in the securities sector for various screenings related to the issuance market, but there are no related systems in place at DAXA or individual exchanges.”

South Korean law enforcement has announced plans to establish a joint virtual-asset crime investigation unit called the Joint Investigation Centre for Crypto Crimes. It will have a staff of 30 taken from other government agencies, including the FSS, National Tax Service, Korea Customs Service and others.

Magazine: South Korea’s unique and amazing crypto universe

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‘Seasonally-Adjusted’ “Good News” Batters Bonds; Biden Bruises Big-Tech

‘Seasonally-Adjusted’ "Good News" Batters Bonds; Biden Bruises Big-Tech

Great news everyone!! Bidenomics is working or something. Retail sales…

Published

22 mins ago

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October 17, 2023

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'Seasonally-Adjusted' "Good News" Batters Bonds; Biden Bruises Big-Tech

Great news everyone!! Bidenomics is working or something. Retail sales soared more than expected, so did Industrial Production, so did Manufacturing Output... and continuing claims are still low...

WTF are people so miserable out in all these sentiment surveys?

Well... it's all illusion/delusion (economics PhD speak for 'adjustments')...

And remember what Goldman warned about on jobless claims: ongoing seasonal distortions have increasingly weighed on the level of continuing claims over the last six months, and we now expect that the reversal of those distortions could exert a cumulative boost of 375k to the level of continuing claims between the end of September and March.

The economic data (seasonally-adjusted) has been holding in 'so strong' as financial conditions have tightened dramatically...

Source: Bloomberg

The "good news" prompted a big jump in rate-hike expectations (Dec 2023 and Jan 2024 basically now at 50% and 60% respectively)...

Source: Bloomberg

And, the "good" news headlines sparked another panic-puke in bonds, sending yields to cycle highs. All yields were significantly higher but the belly underperformed the wings on the day (2Y +10bps, 5Y +15bps, 30Y +7bps), and that is evident on the week

Source: Bloomberg

2Y yields hit 5.23% today... 2006 highs was 5.275%... before that we go back to Dec 2000.

Source: Bloomberg

5Y yields hit 4.88%, its highest since July 2007 (that cycle high was 5.23% in June 2006).

Source: Bloomberg

10Y yields reached up near last week's highs and reversed a little...

Source: Bloomberg

And in case you wondered, 30Y mortgage rates are inching ever closer to 8% - more than 23 year highs - are unprecedentedly decoupled from the effective rate of current mortgage-holders...

Source: Bloomberg

Translation: sellers are trapped and buyers are priced out.

Higher yields, lower stocks right? Nope. The economy must be doing  great so buy, buy, buy. Around 1230ET stocks rolled over (as the S&P 500 tagged its 50DMA) and stocks dipped when a rocket hit a hospital in Gaza and killed 100s (who the f knows where the missile came from at this point). By the close, Small Caps were dramatically higher (short squeeze) while Nasdaq was the biggest loser (China AI exports) with The Dow and S&P trying to hold on to unch...

Another short-squeeze...

Source: Bloomberg

Tech stocks took a spill as the Biden admin confirmed new crackdown rules on exports of AI chips to China. SOX tumbled (bounced, then slid lower again)...

NVDA was punched in the face, despite its claims it would not be affected?

VIX tumbled down to a 16 handle briefly intraday before bouncing back above 18 and ending higher on the day...

The dollar chopped around wildly to end unchanged...

Source: Bloomberg

The dollar's action was echoed in crypto - Bitcoin went sideways to slightly higher...

Source: Bloomberg

And gold sideways to slightly higher...

Crude... did the same... dropping and popping to end slightly higher...

Finally, with real-yields back near cycle highs, valuations for stocks start to get "questionable" again...

Source: Bloomberg

Did Biden just bust his AI bubble?

Source: Bloomberg

Is that another big 'head and shoulders' pattern?

Tyler Durden Tue, 10/17/2023 - 16:00

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