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Re: Santa Barbara Broker post# 95076

Sunday, 05/15/2011 9:33:07 AM

Sunday, May 15, 2011 9:33:07 AM

Post# of 103340
It is illogical to short a stock at $0.0001 as it would require two things:

1. The selling of a tremendous amount of shares to make it worth your while. A $10,000 investment requires the short sale of 100 Million shares.

2. The closure of the company. At $0.0001 it requires the stock to stop trading/deregistration before you can profit since the only place below $0.0001 is $0.0000. So based on 1 above, to get a $10,000 profit the company has to close and...

3. It is all or nothing at this level. It is not like there are interim price points between $0.0001 and $0.0000


So, all these claims of short selling to hold $0.0001 are uneducated claims. There is far greater risk than reward at this level which is why all those companies trading here and made these claims have been uncorked as insider fraud and not NSS.