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Re: DTL post# 250564

Saturday, 08/27/2016 4:59:42 PM

Saturday, August 27, 2016 4:59:42 PM

Post# of 263682
No one is shorting GRCU. Rags like the OTCShortreport provide daily short volume data not short interest.

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
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