When people cost average on pump and dump scheme stocks that drop in price in hopes they go back up over the average price that rarely happens. You have to know it’s doomed when you see the debt and increased authorized.
When you short stocks that go up in price, you short more. Like cost averaging down on a diluted pump and dump you short average up, KNOWING full well they will drop in price eventually. The more you sell higher the more you make when they drop.
If we paid $1.10 and they go to $1.40 we short more. When the shares drop to $.01 or less we make $1.09 on the $1.10 shorts and $1.39 on the $1.40 shorts. Knowing the stock will tank, you short more even if it goes higher on the initial pump stages and you make that much more when it crashes to the floor.
TREN went to $1.55 today but only on 19,000 shares, that is NOT much money to raise on a scheme. TREN is like SGMD initially sell high. When that tranche is over, add debt increase authorized and dilute, and diluted shares always tank.
These are not blue chips or high priced well structure companies where shorting is risky, they are schemes that start the pump on few shares at a higher price, let the price rise up so they know when they drop, people will cost average and more cheap players jump in.
If a ticker sells 10,000,000 shares at $1.00 they make $10,000,000.
If a ticker sells 5,000,000,000 shares at $.01 they make $50,000,000
What makes people think these schemes will just sell $10,000,000 at $1 and then close up shop (Because they have no revenue or business)?
Schemes sell shares for money not to make the company work and what scheme will say NO TO $50 MILLION MORE! When they make more on cheaper shares and sell to more investors who are more willing to spend $.01 per share then $1 per share. It’s a SURE THING the stock will tank. And brokers know they will never have to call back shorted shares with diluted shares available.
The fact that the highest share movers on any given day are all from tickers under $.0001 and they take in $300,000,000 a day on average, when that data never changes you can bet you will never lose shorting these schemes. EVER!
The lenders know they will never call back shares and any shares needed to cover open short positions and never fall into a squeeze. Why would we buy shares on the open market for more then the short selling prices and lose money? We can just buy debt shares for much less then what they were sold on the short even if the current price is higher then the open short position. You can’t lose!
Some are still missing the point I post. You don’t have to cover the short and lose money if the price goes UP. You buy back for less if the shares drop to cover the short and if the shares price goes up you still buy debt shares for less then what you sold the shares short.
You sell $1.10 short, the shares go to $1.50, you buy debt shares for $.25 and deposit them and cover the short position. The debt holders know they will dump most at $.001 or less so they are very happy to get $.25 or even $.10 so everyone wins but the retailers.
