is...retired
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If you think brokers will permit shorting stocks, identify one. You can't because they don't.
Why? Because brokerages require a margin account, and about $2.50 per shorted share in margin. So, for shorting 1000 shares, you would have to put up $2500, JUST to cover the margin. You can't spend that money, it belongs to the broker until you cover your short. At a $.01 value stock, if you bet it is going to drop by 10%, that would be $.001 drop. So, you are shorting that penny stock by betting it will drop 10% to .009. If you are right, you 'win' 1000 X .001, which is exactly one dollar. So, you put up $2500 margin to try to gain $1. Anyone see any logic there?
At the same time, you could use that $2500 to BUY the same stock, giving you 250,000 shares. If it rises the same 10% that you wanted to short by, it means you'd have 250000 X $0.011, which is $2750...
Now explain to us again why people would short penny stocks...if they could.
First, there are no shorters in this stock or any other penny stock except MM's. Brokerages, such as etrade don't permit shorting any penny stock, which they define as anything under $5 per share.
Second, if your shares are up for sale, they ARE available to be shorted. It doesn't matter what price per share you put them at.
MM's BORROW shares that are up for sale, then replace the SHARES when they cover. They don't BUY your shares, they BORROW them then replace them.
Growing companies that are running in the red, and using borrowed money to grow, do not buy back shares. That is completely counter intuitive. Shares are bought back with P.R.O.F.I.T. Period.
No, it is not due in December, regardless of what Mark said. The SEC sets the reporting rules. Quarters are reported 45 days after quarter end, annuals are reported 90 days after FY end. Every trader should know that and never have to ask.
Mark should know that, but he probably forgot the FY end was October 31, which gives them until Jan 31 to file. Public companies are rarely early to report, so I would not expect a report in December.
You can easily check otc markets hours yourself. I copied directly into my first message. I don't need to prove anything, you just need to learn to read things besides message boards.
Not quite true - the OTC market hours is longer than the brokerage access. there can be both premarket and aftermarket trades by other than brokerages.
OTC Markets U.S. Extended Hours Trading
Stocks can always be traded on the OTC Markets U.S. during regular trading hours (listed above).
But there are also Extended Hours Trading during which trades may be made. There is significantly less trading volume during extended hours. Lower volume results is a larger spread, bigger price jumps, more volatility, and more risk. Extended Hours Trading allows investors to act quickly on information that comes out after markets closed.
In the past, only large institutional investors could participate in Extended Hours Trading. Due to the emergence of electronic trading platforms, individual investors are now able to trade during extended hours as well. Depending upon your broker, you can usually choose to execute trades during pre- or after-hours or only during regular trading.
There isn't a Q4. Quarterlies are due within 45 days after the quarter, and annuals are due 90 days after the FY end.
You do realize that the short report has nothing to do with retail traders, like us, right? At least in the penny stock world. It is where MM's have not covered by close of business, which must be reported twice monthly to the SEC.
If you don't believe that, just go to your broker and tell them you want to short 1000 shares. You will have to have a margin account, since you can't borrow stock with a cash account. You would also have to put up $2.50 per share shorted, so $2500 just in margin to short 1000 shares. If it goes down, you might make 1000 X $.005, or $5. That's right, you would be putting up $2500 in order to make $5 ONLY if the stock drops by the amount specified. If it goes up, you lose all the way around.
But your broker will tell you that they don't permit shorting penny stocks anyway, so you CAN'T short it even if you want to, if you are trading through a brokerage.
With $2500, it would be far wiser to just BUY 1000 shares, and take your chances. If it drops, you sit on it. If it rises, you can sit on it or profit from it.
MM's generally borrow stock to fill orders. They usually cover in microseconds to seconds, but occasionally, it doesn't cover before the day is done. That is what is reported to the SEC.
Oh, and short volume? Which was linked...is not even related to short interest. It is just a case of bad choice of words for naming the report. Google for short interest vs short volume to learn the difference. Short volume basically is an indication of how much the stock is being traded, where higher is better.
Don't ever think an RS is a good thing. Been through them before, and there are some real issues. First of all, it is best to sell before, and buy back in afterwards, once the price stabilizes. It will almost always sink during the month after.
But here's the thing - if you are in a brokerage, you won't be able to trade for a few days, while all the shares are recalled, and new ones issued. It takes time for that to happen, and your brokerage won't let you buy OR sell during that time. But, shareholders that are not in brokerages CAN buy or sell. They usually sell right after the RS to get top dollar. As they sell, the share price drops. Meanwhile you are twiddling your thumbs, watching the share price tank.
The ticker will have a 'D' added to it for a month, while everything shakes out. The TA takes care of the actual shares.
Net result? You will almost ALWAYS lose some money in ANY RS, for ANY reason. That's just how it works. I've seen a 1 for 4 split where a month later the price dropped back to the pre-split level. I felt bad for those people because they lost 75% of their investment. I sold before the split, and never bought back in.
So, you have been warned by someone that has been through several of them over the years. It is obviously your choice, but at least you now know what to expect.
MM's could care less what the share price does. They make their spread whether the price is increasing or decreasing. The ONLY thing MM's actually care about is that there are buyers and sellers. It is when the stock becomes illiquid (no buyers or sellers) that they are FORCED BY LAW to buy and sell between themselves, to provide liquidity, so prospective shareholders see action on the stock. They don't MAKE any money on those transactions - so as long as there are buyers and sellers, they just collect on every.single.share that is traded.
And, when MM's do short, they cover in microseconds - no one looks at these companies or their share price - the transactions are all automatic. No one in a tin foil hat trying to eke out weekend beer money by manipulating penny stock prices...
It takes a buyer willing to meet your limit plus the MM's spread.
The AS is unchanged, and will remain so until they file an 8K to change it.
You need a boat to hold your bags. Me too.
A 10-bagger wouldn't even get me even.
Gee, Mr. Businessman, perhaps you should also fire the CEO and take over the reins.
We won't be here...
Talking head that has zero facts commenting on how a business should function...sheesh. We don't have a CLUE what is happening until they file their fins...
If MM's were illegal, you wouldn't be buying or selling stock. They are the ones that actually conduct the trades for us. Without them, you would have to find a buyer if you were selling.
That article was not about MM's anyway...it was about TRADERS that manipulate the price by well-placed sells and buys to force the price up or down. I have said, for years, that it is TRADERS that manipulate the prices, not MM's, because MM's get paid regardless of whether the price is increasing or falling. All they care about is that there are buyers and sellers. I know many think MM's manipulate prices, but all they manipulate is their spread, and they make money on every single share traded - buy or sell - rising or falling.
Traders can manipulate the share price easily, if they have enough shares - I could tank some stocks I own if I wanted to - if you have over 100M shares of any company, you can set up sells at some limit that will literally never let the price go above a certain price until all the shares are sold. I have 250M shares of one company...
Insiders can only trade within 30 days after the last financial filing. Been there as an insider. Every trade by an insider is reported in the filings...you won't see any insider trading during the quiet period - that would be illegal, and provable.
You do realize that Clay Trader is a business and the charts are intended to lure into paying for his service, right? How could any one person match up 50 stocks a day with charts unless it is simply an automated system. Go read the other stocks the charts go to - they all say the same thing, just the numbers are different.
Each MM has their own ask and bid - there isn't just one bid/ask. Different MM's may fill parts of your order. You'll get the best price available for each tranche...
That's why mm's spread changes - if they find they aren't getting the orders, they change their spread to start picking up more orders. It is an automated market, with computers keeping track of the rate of successful trades, and the spread may automatically adjust if they get out of range. Don't ever think people are watching these companies and manually adjusting things - there are rules for their computers, and they compete directly against each other, fighting to get the orders.
And again, MM's could care less what the share prices are doing - regardless of whether it is rising or falling, they get their spread and move on...except when a stock becomes illiquid, (no trades), upon which they trade amongst each other to keep the market fluid.
Go read about best execution for market makers. They have to give you the best price available, and they can't let you buy shares above that. Try buying a share for $100 limit. You'll get it at the lowest possible price.
TDA doesn't do the trading - they pass the orders off to the MM's, just like every other brokerage. The mm's fill a partial at the best profit point for them, then fill at a lesser profit, etc, until it is filled. You can see a trade for just one share, sometimes. It happened to me.
Yes, I have read that before. It is just BS at this level. There are OTC stocks that are above the traditional $5 share price for institutional investments, but no savvy investor would give ANY institution money to invest in penny stocks. Logically, you don't invest other people's money in companies that are not profitable. Period.
As long as these companies live on loans, they are not suitable for *ANY* institutional investments.
Right - my gamble on ONCI is now down 97.75%...a 10 bagger wouldn't even break even...It had a good story, but nothing ever delivered, while stock price plummeted.
No use selling it, and locking in that loss - it can't go any lower than it already has.
Institutional investors don't deal with penny stocks. Institutional investors use other people's money to make wise investments to increase their value. Penny stocks are the exact opposite of wise investments. Penny stocks are a gamble, some worse than others.
And, no, companies that are not profitable don't use loans to buy back shares. That is a completely idiotic idea -
Shares are purchased with P.R.O.F.I.T., not borrowed money. Good Grief!!
It says OTC trades would return to the previous commission rate. In other words, they simply cancelled the free trades for OTC. Not retroactive.
10K is due 90 days after FY end...10Q's get 45 days.
People should learn to look things up for themselves...
An institutional investor is an entity which pools money to purchase securities, real property, and other investment assets or originate loans. Institutional investors include banks, insurance companies, pensions, hedge funds, REITs, investment advisors, endowments, and mutual funds. Operating companies which invest excess capital in these types of assets may also be included in the term. Activist institutional investors may also influence corporate governance by exercising voting rights in their investments.
As I said, if I found my 'institutional investor' was playing with penny stocks, I'd quickly remove my money. Especially these risky stocks.
My average is below .01...I've been up over 100% for months...
Institutional investors don't invest in penny stocks. Penny stocks are highly risky, exactly the opposite of what institutional investors are interested in. Would YOU want your 401K invested in penny stocks? Of course not - you would fire them immediately.
Enough talk about institutional investors while the stock is still a penny stock - meaning less than $5 per share.
Right, everyone shorts a stock that is moving up...
That is complete bullshit. There are no mm signals. Just delusional traders that grasp anything to explain what they don't understand...Does anyone understand the term 'automated market'? It means it is, uh, automatic trading, not handled by people...
MM's don't pay commissions at all. They collect their spread. When you order 10000 shares of some stock, they may not get all 10000 from one seller. Thus, smaller trades on their behalf. I got 999,999 shares one time, and 1 share to finish off the 1 mil I bought. I can prove that by my transaction history.
MM's get shares that give them the best profit first to fill orders, then buy from other places with less profit. They might even have to nudge their ask/bid in order to complete orders.
So, it is not only normal to see small trades, it is how the work is done by the mm's. No, there are no secret codes, either. This market is fully automated, and no MM ever looks at these companies directly - they look at orders for buying and selling, and try to be the first to fill them.
No one is shorting VRUS - and if they say they are, they are lying. No brokerage will even permit you to short penny stocks, and for good reason. Ask YOUR brokerage about it. Etrade won't do it. I don't know of any that will. So, liars if they claim to be doing so...
It is not a matter of waiting for a buyback. They are not profitable, so there is no money to buy shares with. And if and when they do decide to do a buyback, there will be a significant SEC filing explaining exactly how many shares will be bought back, and at what price, and several other terms.
I would look for profit in the quarterlies before even thinking that they might reduce the OS that way. But of course, an RS is already approved.
Don't be so naïve...mentioning that a pr is upcoming is fine.
It is YOU that are trying to put a timeline on it. Just be patient - it will appear when the details are worked out and it is reviewed and released.
Things change all the time in business - and you never want to have to rework an already released PR - it not only costs money, but the wrong one may be viewed and the correction not viewed.
Just let them get it right...it will be along when it is ready.
Companies don't release press releases to appease shareholders. They release them when they are completed and reviewed by all that need to review them, and any required changes incorporated. The LAST thing a public company does is time press releases JUST to affect share price. That would easily be illegal anyway.
It can take significant time to get a pr into its releasable form. I know - I used to review them and require changes myself. And everyone has multiple jobs, and doesn't drop everything just to incorporate changes into an upcoming pr.
One person, or a group of people, can work together to make money on these stocks. It is easy, actually. You need to have enough money to buy a large number of shares at a low buy-in price. Then, you set up sells based on how much profit you need to continue the scheme.
Now you have a large number of shares, with part of them up for sale at a higher price, let's just say 10% (whatever the chart history tells you). These are set good for 60 at a limit. Meanwhile, you also set up buys at the lower limit, also good for 60 days.
Now, all you need to do is sit back and see if a trend develops that causes you to adjust your limits. Otherwise, the stock will bump along, making you money on your sells, and buying more at the lows.
To onlookers, your activities are totally invisible. But you will be making money the whole time - all the stock has to do is what it always does. Bump up and down regularly. People will be blaming MM's, shorters, and every conceivable excuse for why there seems to be unlimited shares available, and every time the price increases, it drops - because of the sells.
It takes skill to set this up, so you don't buy in at too-high a level, and it helps if you have partners that help pump when needed, and bash at other times. In effect, trying to force the price to meet either of your limits.
I have over 250,000,000 shares of one stock, and have my buys and sells set good for 60. I only occasionally have to change the limits or restart because of failure to meet the limits within 60 days. It is a money making machine.
Notes are renegotiated all the time.
It is extremely unlikely that the note will be paid with cash this year - they aren't profitable yet, and using that much cash to pay off a loan would hamper the growth of the company. On the other hand, the already approved reverse split could happen, which would boost the share price well above the $0.10...
Then it would be up to the terms of the note whether the negotiated $.10 would be boosted by the RS ratio...
1,396,618,260 - float. The rest are restricted.
The reverse split was already approved, and now there is an onboard attorney to look into and work out details. They can't uplist to a higher exchange with the current OS. It would TAKE an RS to do that, and it's already approved legally. There isn't enough money to buy back shares, so that's out until they are profitable.
Never say never. They have said they want to uplist to a major exchange, and they have an approved RS...To get a $4+ share price would require about a 200 for one split. The approval is up to 400 for one.
Everyone should understand that your portfolio value does not change in an RS, but usually, right after the RS, people sell to cash out their profit. That drops the share price quickly. And, we, retail won't be able to trade for 2-3 days while the TA and brokerages work out details. Others that are not in brokerages CAN. I've twiddled my fingers while an RS completed and timed out and lost bigly. Never again - I'll sell before, wait to see the final within say 30 days, then buy back in if things look good. But I will never, ever ride through one again.