Home > Boards > Free Zone > Penny Fundamentals > DD Support Board and Research Team

@236T568 re UPOT PM. Why haven't more people

Public Reply | Private Reply | Keep | Last ReadPost New MsgReplies (1) | Next 10 | Previous | Next
TraderGash Member Profile
 
Followed By 19
Posts 857
Boards Moderated 0
Alias Born 02/21/12
160x600 placeholder
Stocks Open Sharply Lower on Rising Virus Cases
U.S. stocks fell in early trading Wednesday, as rising coronavirus infections shook investors' confidence in the global economic recovery and sent them toward the safety of Treasurys and the dollar.
Carlsberg Upgrades Guidance After 3Q Revenue Beat -- Earnings Review
GlaxoSmithKline 3Q Net Profit Beats Market Forecasts -- Earnings Review
Housing Affordability Crisis Deepens in Fire-Prone Parts of California
GE's Cost Cuts Offset Troubles in Aviation Unit -- 2nd Update
Correction to Article About Boeing Job Cuts
Allergan Presbyopia Treatment Hits Main Endpoint in Phase 3 Studies
UPS Posts Strong Gains as Package Volumes Swell--Update
GlaxoSmithKline 3Q Net Profit Falls, But Beats Forecasts
Norfolk Southern 3Q Profit Moves Lower
Eni Swung to 3Q Loss But Says Performance Improved on Quarter
Mastercard 3Q Top, Bottom Lines Fall Short of Estimates
Pandemic Drives More Boeing Job Cuts
Stock Futures Point to Selloff on Rising Virus Cases
New York City Community Confronts Impact of NYPD Budget Cuts
GE's Cost Cuts Offset Troubles in Aviation Unit -- Update
Sony Looks Well Placed to Benefit From Next Console War -- Heard on the Street
Inside Uber and DoorDash's Push to Win the Most Expensive Ballot Race in California History
GE's Cost Cuts Offset Troubles in Aviation Unit
Novatek's Net Profit, Revenue Fell in 3Q
Linde to Supply Gases to New Samsung Semiconductor Facility
Fiat Chrysler Issues 2020 View After Rise in 3Q Profit
Automatic Data Processing Sees FY21 EPS Between Flat and Down 4%
CME Group Misses Adjusted EPS Estimates, Beats on Revenue in 3Q
General Dynamics 3Q Sales Fell; Profit Beat Views
Automatic Data Processing's 1Q Revenue Slips Less Than 1%
Andritz 3Q Preliminary Earnings Beat Market Expectations
Top Company News of the Day
Blackstone Earnings Tick Higher as Tech Lifts Portfolio
Eli Lilly Gets Deal With U.S. Government for Covid-19 Neutralizing Antibody
TraderGash   Monday, 02/16/15 09:22:39 PM
Re: None
Post # of 177926 
@236T568 re UPOT PM. Why haven't more people shorted this stock?

There are generally two classes of serious OTC short biased traders - long term, who are shorting and willing to wait for the eventual decline in PPS, and the short term, who are trying to catch the point at which the stock price cracks for a rapid gain.
Both classes are not interested in shorting at this time because:
- the insiders appear to still hold most of the float. There has not been a lot of volume since trading began compared to the O/S number. Shares sold to bagholders back in the March / April spike may have been bought back by insiders already at much lower prices. When insiders control the float, they can manipulate the price. The price can therefore not suddenly drop, and therefore short biased traders are unwilling to hold a position.
- it costs $2.50 in margin to short a stock under $2.50, so at the current PPS, you are putting up a lot of margin for a position where the price may not move for months.
- there is no obvious catalyst that would cause a drop in pps at this point.
For short biased traders to be interested in UPOT, there would have to be a significant increase in volume and PPS, based on either a promotion campaign or a manipulation which triggers momentum day traders to be interested and help drive the price up.
I haven't looked very hard, but UPOT does not seem to be subject to promotion at this time.
There are a lot of scammy, worthless stocks trading on the OTC that no one is interested in shorting, as a successful short trade needs something to trigger a drop in pps. This could be either insiders dumping, or momentum day traders deciding that the party is over after a big run up, or "investors" who lucked into a big run up deciding to take profits when the price starts weakening. Again, if the insiders hold most of the float, this just isn't going to happen. The exception to this would be an insider whose shares have been restricted and the waiting period is over and who start dumping because they can. Research of the timing of convertable notes and conversion of preferred shares can sometimes indicate that this may be about to happen.
IMO, one of the reasons that MDBX held up for so long was that Vinnie was not greedy, and kept a relatively tight reign on the float.
So thats my 2 cents worth. Any other short biased traders are welcome to pitch in.

Public Reply | Private Reply | Keep | Last ReadPost New MsgReplies (1) | Next 10 | Previous | Next
Follow Board Follow Board Keyboard Shortcuts Report TOS Violation
X
Current Price
Change
Volume
Detailed Quote - Discussion Board
Intraday Chart
+/- to Watchlist
Consent Preferences