Grapefruit USA Inc (GPFT)

[investor_trader]

Short Selling IMGG:

I understand short selling and covering a stock but I fail to understand the high level of shorting when it comes to IMGG [51% short selling this past week; 41% short selling the prior week].

I’ve been following the IMGG trading data for the past few weeks.

When one considers the bid-ask spread [typically 1 cent] and the intra-day trading range [only 2-4 cents on the last 6 trading days], it’s hard to understand why shorting would be attractive.

If the short trader’s timing is nearly perfect, he/she might clear 0.5-1.0 cents per share on a favorable day [stock price drops from daily high to daily low].

On a 20,000 share trade, that translates to a $100-$200 profit.

To me that seems like a high risk – low reward approach to trade a stock which could explode to the upside on any new day.

Am I missing something here? Could some/much/most of this shorting be ‘naked shorting’?

BTW: fink, thanks for sharing the article on ‘naked shorting’.