Saturday, August 27, 2016 4:59:42 PM
I really think most don't understand how shorting works and why it isn't economically feasible to short penny stocks.
First you have to find a broker that will loan you the shares to short - and you have to have a margin account and for stocks below $2.50 per share you have to have $2.50 per share for each share you borrow. If you are shorting 1 million shares you would need $2.5 million in your margin account.
But you would only control $11,400 of GRCU stock at today's price.
First, you have to borrow shares from your broker to short (and sell them on the open market) - then you have to buy the shares back at the lower price and return the borrowed shares to your broker.
This is all done via a margin account.
For GRCU the most you can profit is $10,400 on 1 million shares if the price dropped to 0.001 and that doesn't include trading fees and margin account fees. But, you would have tied up $2.5 Million in a margin account that you couldn't use.
So, when there are posts about shorting sub-penny stocks it really isn't feasible.
The only price manipulation on TTDZ/GRCU has always been insider pumping - from Lykiardopoulos to Osegueda/Cruz and now Calvin Ross.
What you need to watch for are fake loans that GRCU defaults on very quickly.
IG
IG
"Are you gonna pull those pistols or whistle Dixie?"
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