If Homestead do produce diamonds, there won't be enough time for short seller to respond. They would probably lose everything they had and much, much more.
This is the case where short this stock do not pay. You can make a few, very difficult bucks, in a long time, if there is enough time to cover. But you also risk everything you have. If you are long and if all of DMXP properties do not have any minerals, all you lose is the money invested. But when you are short, the loss is going to be so vast that won't be funny.
Lets take a look. If diamonds are found in Homestead, then the property will be worth at least hundreds of millions. We should be close to $1 per stock. Now we are valued at $0.0018, its about 555 times the difference between $0.0018 and $1. So for each $1, the short has to pay back around $500. This number is not funny. For example, if someone shorted $50,000 worth of DMXP (or around 25,000,000 shares). This someone will lost $25,000,000. We traded about 2 millions shares on an average day, then the time to cover would be about 13 days. So in order to cover 25 million shares on a regular days, then it will take at least 13 trading days, if no one else buys.
In any case, short DMXP is suicide, big time.
AI
