The short answer to your question is simple for me. Should I spend 5% of my cash reserves to do an audit of my financials? I could prove that I'm a legitimate company to all the naysayers and shut everybody up, plus bring in interest from new investors? Yes, I think it is well deserved because that one action will increase the share price. And if they did do the buyback of the shares according to one of their PRs, it would easily make that money back with the share price going up.
But I can entertain your line of thought that putting money out for an audit does not make sense when you can use that money for expansion. But if you go by this train of thought, why would you think there is anybody shorting a 2 cent stock? What is the gain they get by locking up their money to get a maximum two cents of profit and have to wait until this goes to trip zeros which could be a very long time instead of taking that capital and shorting other stocks that have a lot more room to run downward?
In one instance, spending the money on an audit could have a compounded impact on raising your share price, which in turn benefits the company in multiple ways, as I stated in the last post. In the instance of shorting, you're spending your money to get a maximum of two cent profit. Which do you think makes more sense? I don't believe anyone is shorting the stock. If they did short it, it would have been when it was 60 something cents and there's no way they're still holding at this point when there are so many other companies out there that they can do the same with and make some real money. Don't get me wrong, I do you believe naked shorting exists, but I don't see the point on a 2 cent stock.
