Wednesday, January 25, 2017 8:39:35 PM
There is absolutely no one shorting SMAA - who in the hell would short a 0.0002 stock and there isn't any brokers that would loan the shares to short.
I really think most don't understand how shorting works and why it isn't economically feasible to short penny stocks - especially a trips stock.
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 $200 of SMAA 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 SMAA the most you can profit is $100 on 1 million shares if the price dropped to 0.0001 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.
Short volume isn't short interest! You really need to understand the trade cycle.
And for those using junk like the OTCShortReport (short volume) - they need to understand that FINRA Daily Reg SHO data, it is meaningless on it's own. The Trade cycle is Trade Date plus 3 days for settlement, Daily Reg SHO only shows the Initial leg of each transaction and doesn't reconcile based upon settlements made seconds later as the trade has yet another 3 days to settle.
IG
"Are you gonna pull those pistols or whistle Dixie?"
ZenaTech, Inc. (NASDAQ: ZENA) Launchs IQ Nano Drone for Commercial Indoor Use • HALO • Oct 10, 2024 8:09 AM
CBD Life Sciences Inc. (CBDL) Targets Alibaba as the Next Retail Giant for Wholesale Expansion of Top-Selling CBD Products • CBDL • Oct 10, 2024 8:00 AM
Foremost Lithium Announces Option Agreement with Denison on 10 Uranium Projects Spanning over 330,000 Acres in the Athabasca Basin, Saskatchewan • FAT • Oct 10, 2024 5:51 AM
Element79 Gold Corp. Reports Significant Progress in Community Relations and Development Efforts in Chachas, Peru • ELEM • Oct 9, 2024 10:30 AM
Unitronix Corp Launches Share Buyback Initiative • UTRX • Oct 9, 2024 9:10 AM
BASANITE INDUSTRIES, LLC RECEIVES U.S. PATENT FOR ITS BASAFLEX™ BASALT FIBER COMPOSITE REBAR AND METHOD OF MANUFACTURING • BASA • Oct 9, 2024 7:30 AM