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Re: chester99 post# 55796

Friday, 06/01/2007 11:54:23 AM

Friday, June 01, 2007 11:54:23 AM

Post# of 115222
Most of the shorts in penny stocks arise when market makers sell shares to meet demand. Many of these stocks end up on the SHO list for a while after they run. If you look at the number of dollars short, it's usually trivial anyway. Shorting cheap stocks for fun is expensive, troublesome, and usually unprofitable. Institutions would never do it because they can't even buy or sell enough in a short time to take what for them would be a minimum position. Almost all the massive short positions that people like to talk about in penny stocks are mythical (unlike the short positions in a few more highly traded stocks, which you can find documented in the NASDAQ figures: OSTK and IIG, for example).