One Step Ahead

[janice shell]

Sigh... There is no such thing as "cellar boxing". Ask any financial biz professional.

Sure, penny stocks are manipulated, usually with the enthusiastic collaboration of management. Shorting them is not a good idea. They might spike at any moment and wipe you out. Look at SGGM the other day, for example. If you'd been short when it ran, you'd have a major margin call on your hands.

Many people think hedge funds run huge amounts of money. Most don't. Maybe a hundred million, maybe less. And of course they're diversified. No way are they gonna risk half their worth shorting a stock like CMKX. Neither are they gonna tie up their funds hanging onto a short position. You can't take your profit or get back your margin until you close the position.