Tuesday, March 29, 2011 9:09:20 PM
5cap: What facts don't you grasp?
That comparing a stock with an O/S of 19.5M to one with and O/S of 1.5M is an invalid comparison? Yes, something that's 13X less than something else surely behaves the same way.
That trying to prove your point with an internet article written by someone that doesn't know what they're talking about is not really a good idea? Or did 149,800 people trade VTSI stock today?
That it's easier to short a $8 stock vs. an $0.08 stock? Maybe you want to check out the margin requirement difference since the concept seems foreign to you. Anyone here can easily short an $8 stock, wonder how many here can pony up the huge margin required to short a $0.08 stock. Last time I looked, it cost $2.50 PER SHARE to short a penny stock at one of the few brokers that allows it. So to short 10,000 shares of VTSI ($800 worth of stock) you need $25,000 margin. Think anyone is doing that? To short 100 shares of an $8 stock, you need about $1,200 (since margin is generally 50%).
You've provided ZERO facts that show liquidity won't be affected yourself, only poor apples-to-oranges comparisons to other companies and citations from an article written by a guy who has no clue what he's talking about. So if you have any relevant facts, please provide.
That comparing a stock with an O/S of 19.5M to one with and O/S of 1.5M is an invalid comparison? Yes, something that's 13X less than something else surely behaves the same way.
That trying to prove your point with an internet article written by someone that doesn't know what they're talking about is not really a good idea? Or did 149,800 people trade VTSI stock today?
That it's easier to short a $8 stock vs. an $0.08 stock? Maybe you want to check out the margin requirement difference since the concept seems foreign to you. Anyone here can easily short an $8 stock, wonder how many here can pony up the huge margin required to short a $0.08 stock. Last time I looked, it cost $2.50 PER SHARE to short a penny stock at one of the few brokers that allows it. So to short 10,000 shares of VTSI ($800 worth of stock) you need $25,000 margin. Think anyone is doing that? To short 100 shares of an $8 stock, you need about $1,200 (since margin is generally 50%).
You've provided ZERO facts that show liquidity won't be affected yourself, only poor apples-to-oranges comparisons to other companies and citations from an article written by a guy who has no clue what he's talking about. So if you have any relevant facts, please provide.
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