Paychest Inc (PYCT)

[adanac]

WHO would short a stock at .0001???

Since I've been here we've been told
"No one would dare do it, risk is too high"
"Margin requirement too high"
"Reward is too low"

Well doing some dd for another reason, I came across evidence of a company being shorted at .0001. It was reported on their Bi-Monthly Short report. See below
At 'supposedly $2.50/share' margin would be $20,072,735.00
Maximum Profit=====$805.50 less 2 commission and the Price paid to cover

SHARES SHORTED
Sept 30, 2008==== 8,054,998
Sept 15, 2008======= 25,904

09/30/08 0.0001 0.0002 0.0001 0.0001 8,691,002
09/29/08 0.0001 0.0001 0.0001 0.0001 6,050,000
09/26/08 0.0001 0.0001 0.0001 0.0001 33,031,800
09/25/08 0.0001 0.0001 0.0001 0.0001 1,000,000
09/24/08 0.0001 0.0001 0.0001 0.0001 19,840,000
09/23/08 0.0001 0.0001 0.0001 0.0001 3,409,999
09/22/08 0.0001 0.0001 0.0001 0.0001 15,876,446
09/19/08 N/A N/A N/A 0.0001 0 N/A
09/18/08 N/A N/A N/A 0.0001 0 N/A
09/17/08 0.0001 0.0001 0.0001 0.0001 2,646,000
09/16/08 N/A N/A N/A 0.0001 0 N/A
09/15/08 0.0001 0.0001 0.0001 0.0001 5,999,999
09/12/08 0.0001 0.0001 0.0001 0.0001 700,000
09/11/08 0.0001 0.0001 0.0001 0.0001 18,398,600

Did they bother to TRY TO COVER, in order to free up their margin? Apparently NOT ALL.

SHARES SHORTED
Oct 15, 2008===== 2,504,998
At $2.50/share, margin have been reduced to $6,262,495.00

Since NO TRADES WENT OFF AT UNDER .0001 and the SHORT HAD TO HAVE BEEN DONE AT .0001
LOSS WOULD HAVE BEEN SELL== $805.50 LESS commission(s)
BUY BACK TO COVER (@ .0001) $805.50 PLUS commission(s)


10/15/08 0.0001 0.0001 0.0001 0.0001 10,135,000
10/14/08 0.0001 0.0002 0.0001 0.0001 18,800,000
10/13/08 0.0001 0.0002 0.0001 0.0002 13,725,000
10/10/08 0.0001 0.0001 0.0001 0.0001 10,000
10/09/08 0.0001 0.0001 0.0001 0.0001 900,000
10/08/08 0.0001 0.0001 0.0001 0.0001 2,001,010
10/07/08 0.0001 0.0001 0.0001 0.0001 6,009,999
10/06/08 0.0001 0.0001 0.0001 0.0001 18,507,996
10/03/08 0.0001 0.0001 0.0001 0.0001 40,599,999
10/02/08 0.0001 0.0001 0.0001 0.0001 10,875,000
10/01/08 0.0001 0.0002 0.0001 0.0002 3,450,000

the shorts have gone NAKED (not reporting) to avoid embarrassment)

AND avoid the "$2.50 margin requirement", although something would be required.

OH, THE COMPANY NAME-----PAYCHEST (PYCT)

http://www.otcmarkets.com/stock/PYCT/short-sales