I don't want to sound rude, so please don't take this as a personal attack, but your analysis of shorting is not even remotely accurate.
First of all, there are very few people I know, including myself, who have brokerage accounts which allow shorting of pennys (not to mention sub-pennies). Yes it is possible, but I bet you dollars to doughnuts that you can spend an hour on the phone and you will not find a brokerage who would let you short this stock. However, if you have the right brokerage, equity position, and track record, you would find that is most certainly possible. Just improbable. (the margin requirements are unbelievable and make the potential return not worthwhile)
Secondly, to speculate as to the risk/reward of shorting the stock, considering that there is currently massively dilutive financing apparantly taking place and the stock hit a new historic low today, down is as likely as up at this point. Not to mention that you could probably throw $100k directly at the company and buy 100 Million shares right from the treasury without any trouble. I have absolutely zero doubt you could cover any short postion without any delay or risk.
As for $1 a share, they could dig up a bag of cut diamonds and they wouldn't reach that amount. There has to be a billion and a half shares currently outstanding, and even economically viable properties wouldn't support a market cap that high. I'd say a more logical optimistic maximum valuation would be about 5 cents, but this could be more accurately be determined by looking at the value of other established exploration companies that have found solid prospects.
Now from .0016 to 5 cents is still a hell of a return and I'd love to ride that train. However, since i have been following this stock the only ones whom have made any profits have been those who have traded the momo or anyone who rode it down.
There are no good stocks, only good trades.
