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Re: Estate1 post# 67446

Sunday, 03/10/2019 8:46:01 PM

Sunday, March 10, 2019 8:46:01 PM

Post# of 186031
That short interest number is meaningless for sub penny stocks. To prove it, just TRY to get your brokerage to short a hundred shares of any sub penny stock. They won't do it. MM's short to get shares to fulfill orders, but that is not the same as intentionally shorting a stock, betting that it will go down. Mm's try to cover within seconds, or at least by close of the day.
If you don't understand the financial picture, consider this. If your brokerage WOULD allow you to short 100 shares of VRUS, that would cost you 100 X $2.50 or $250 PLUS the then-current share price ($.0066 X 100=$.66). That is simply to provide the margin the brokerage needs. Now, if VRUS dropped two ticks, and you took advantage of that, you would have made 100 X .0002 for a grand total of 2 cents. But to GET that 2 cents, you would have a trade cost of, say, $5, plus you would have had to put up the $250 to permit the short AND the $.66 to short the stock. You get your .66 cents back but have to pay .64 to close the short.
Only an idiot would scale that up to make, say $.20 or even $2, which would cost 100 times the margin...or $25,000 JUST to cover the margin only.
And, all of that would take place with a stock that is primed to take off. Who on earth would do that? Would YOU put up $25 grand to try to make $2 on this stock? How about using that $25,000 to BUY shares giving you almost 4 million more shares and instead bet that it would go up? The more likely scenario, obviously.
So, no one is shorting sub penny stock. No brokerage would even permit it. Look it up. Ask your brokerage, or ANY brokerage.