Digital Utilities Ventures Inc (DUTV)

[Voices of Reason]

A word about shorting: Brokers require investors to put up collateral to guarantee against potential losses in the form of margin requirements. Often times, brokers will require OTC investors to have $2.50 of margin per share to short a stock under $2.50, which can make shorting penny stocks very costly, especially when you get a margin call.

For example, if an investor shorted 1,000,000 shares of DUTV stock at say $0.0007, you have to have $2,500,000 (1,000,000 shares x $2.50) in your account. All along, the maximum profit for this position would only be $700 ($.0007 x 1,000,000) if the stock went all the way to (near) zero before covering. For this reason, along with finding a broker willing to lend you sufficient shares to short, the prospects of shorting a stock at this price level are extremely unlikely. Even at a much looser margin requirement one can easily see the math would never make much sense.

Shorting penny stocks will normally not occur unless the price is $1.00+.