Sugarmade Inc (SGMD)

[MallenNV]

You only short a pumped OTC stock when it's above $.01 knowing it's a pump and dump so you can be assured the stock will drop after the pump is over or after the dilution phase of the pump.

Shorting it now will make no one any money unless you buy 10's of millions of shares with the hopes to sell when they fall even further.

The problem is that the short positions will likely be manipulated up to create a short squeeze forcing shorts to pay more for the shares that they sold them for while at the same time preventing anyone from selling except at a loss.

This just adds more money to the company as they sell shares that are needed to close out the short position. If the shorts decide to hold the positions open to wait for the shares to fall, they will lose money paying the fees on the borrowed shares.

Meaning they will lose either way and make the company more money as the open short is a guaranteed sale for shares no matter the price.

And if the shares end up all selling, the only way to close the short position would be to put a higher bid price exceeding the short price.