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Re: tincup2 post# 60880

Wednesday, 09/19/2012 5:53:47 PM

Wednesday, September 19, 2012 5:53:47 PM

Post# of 97615
They would have had to put up 2.50 per share in margin. So it makes no sense to hold to zero as once the stock is like .10 it is holding up 2.50 of your money with a potential profit of only .10. As well they may have to pay for the borrow which of course makes it even less worth while.
Anyone short will likely cover a few days to week or so after it opens. Initially the stock will open down and hold up as true believers buy. Then they will die off and the stock will drop further down. Eventually it will become very hard to buy or sell and lose 90%+ of its value from the last pre-suspension trade.