ScripsAmerica Inc. (SCRCQ)

[coolerheadsprevail]

Nite had been blocked out a good part of the day at the bid denying his trades. This last trade was hilarious. A dramatic view of a short that needed to make a few bucks and bkrt trying to clear out seaside stock.

Although no one ever really knows for sure who is selling (i.e. cheap stock holder “A” vs cheap stock holder “B”) and whether the seller is selling actual shares or selling shorted shares, I think that the following factors that now currently exist which did not exist previously, make it more likely now that there is very much an increased probability of shares being shorted:

(1)
Decent-sized gains in the sp over what SCRC has typically experienced of late, in particular reaching the .14x levels which has historically been a key resistance point that preceded significant retraces. So shorters may be thinking that this is the price level where they can “rinse and repeat” a short cycle.

(2)
Above-average volume for several consecutive days. Short-term rises in sp on above-avg volume always invites shorting.

(3)
Increased involvement of TUTs (i.e. hedge funds) establishing some long positions. As I had opined previously, once TUTs get involved, we will likely begin seeing increased shorting activity because not only do TUTs not need to worry about high account maintenance requirements the way retail investors do, but they have the resources and ability to locate hard-to-find shares of penny stocks to borrow; and most importantly, these TUTs are likely not shorting as a direct trading strategy (although some may), but most would be shorting as a straight hedge to protect their otherwise exposed long positions. Risk management 101 in many regards.


And according to a site that I use that tracks daily short sales, we have seen unprecedented levels of shorting of SCRC these past 5 days, the magnitude of which we have NEVER seen before:

443k shares shorted today, FRI, 12/19 (27% of total volume)
351k shares shorted WED, 12/17 (44% of total volume)
725k shares shorted TUE, 12/16 (31% of total volume)
690k shares shorted MON, 12/15 (59% of total volume)

(NOTE: THUR, 12/18 data not available on the site but it is likely comparable)

These volumes are way too much to be retail.

IMO, this would be consistent with why the sp has stagnated even with so much buying pressure the past 3-4 days. It may be that the entities shorting expected the sp to crater like it always had once the sp kissed the .14x levels. But when it did not and buyers continued buying, they doubled down the next day, and then again the following day, etc, etc, etc, in an effort to keep a lid on the sp – after all, if it didn’t get reined in, they would need to begin covering and their paper losses would become real losses.

I’m not sure what the TUTs who are shorting may do next. Their “doubling down” efforts each successive day has not brought the sp down. Thanks to continued buying, it has actually help form a more sturdy base at .13x (with over a million shares at .14x just from today as well) – which decreases the odds that they will be able to cover at lower prices.

I do not believe that those who bought all these 6M shares in between .12-.15 over the past 5 days will be selling if the sp were to fall from here, so count these shares out w/regards to shares available for the TUTs to cover with.

IMO, the ability of SCRC to continue its current march forward and upward rests squarely on the shoulders of JOSEPH ZAMPETTI and his fellow criminal CORE PIPE-holders as well as the financiers who hold overhang shares priced between .09-.11. So long as these holders of discounted stock don’t cave in if the sp were to begin to dip, and begin selling in a fearful effort to lock in their profits, then it should be difficult for the TUTs to be able to cover and exit unscathed – and the current sp levels should be able to be maintained.

The concern, obviously, is that with the deep pockets that the TUTs have, how many days will they continue doubling down in order to suppress the sp? If they are relentless then the question will become whether or not buying interest can keep pace?

This is where getting a steady diet of MEANINGFUL news about SCRC accomplishments can be crucial to fan the flames of buying interest. An announcement of any of the following in the near future would be huge if any of these scenarios were to unfold:

• Announcement of debt paydown w/LOC capital
• Announcement of acquisition of some sort (preferably another brick and mortar pharmacy in a new state, LOL) w/LOC capital
• Announcement of launch of RapiMed in Hong Kong (preferably with an accompanying sales order or two)

RapiMed was stated as being launched by year-end, so BS Schneiderman better come through. And there is no reason that a decision on what to do with the LOC capital couldn’t be made by now and be PR’d.

Fascinating stuff going on here… …SCRC shareholders are starting to get a taste of what life in TUT neighborhoods is like, LOL…