CMKM Diamonds Inc (fka CMKX)

[stockhound101]

You are correct about the price swings Fung and that's why I'might still be for shorting in a limited amount for that purpose only, but I don't believe in being able to short the whole float just because it's there to do so.
Also so what if you have huge spikes in the PPS if someone wants to pay that price let them.
You don't go to an auction and some paintings estimated value is ONE MILLION and it brings FIVE MILLION and say your paying to much do you? Even though that painting may never bring over ONE MILLION again.
Look at GOOGLE trading at what 40 times earnings. Are you going to stop trading and say it's to much.
You only take up for shorting legal or otherwise, because it's a way for Market Makers to virtually gaurantee a profit for themselves and a way to manipulate the markets to their favor without the investor ever even knowing it's being done or that he the investor is being screwed.


"stockhound....I guess you don't understand the system. Try to imagine the price swings you could have just from hour to hour on a thinly traded stock.

If shorting is legally limited then no one will be squeezed out of the business, but yes then they will have risk because they would only be able to short a limited amount before the PPS would rise and they would have to cover. As it is they just continue to short and refuse to cover until a time and place of their choosing at a profit. That's why we now see so many companies on the REG SHO list month after month. It's MM's refusing to take a loss on shares they shorted. This does serious long term damage to a company by forcing it to dilute more share into the market to operate due to the PPS being held down deliberately by the MM's that are short.

To say shorters have no risk again is saying you don't understand how it works. They actually at times are forced to take on quite a bit of risk. If market makers continually refuse to take shares short, they are squeezed out of the business."

"