Innovation Pharmaceuticals Inc (IPIX)

[MinnieM]

As a rule, on stocks under $2.50 you don’t have to be concerned about other traders shorting. The vast majority simply can’t afford to. And, I don’t concern myself about the mm’s shorting in the course of maintaining a market since those shorts do eventually get covered. Unfortunately, there isn’t a running list showing the covers.

Regarding fellow traders shorting, you might want to take a peak at this conversation. The links are followed by the post or quote from post.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=81820257
I tried to short 10 MIllion IxxA at .0004 but online broker wanted $25 Million for a $4000 short. I evaluated the risk/reward and as much as I could of made an easy $3,000 in ahour or even more I just couldnt seem to fund the margin account quite to the required amount

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=81834383
Another rejection, this one from Tradefreedom/ScotiaItrade.

Hello Mr. XXXXXX,

Unfortunately TradeFreedom/Scotia iTRADE does not permit the shorting of OTC; PK,and BB stocks.

Sincerely,
XXXXXXXXX
Senior Investment Representative

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=81880948
lol... I was pretty shocked the first time I saw what Interactive Brokers (IB) wanted in my account to allow me to short a penny stock. It was quite educational. $2.50 per share was required to be sitting in my account. It just doesn't make sense to short them unless you are extremely wealthy.

The next issue you'll encounter is finding the shares to short. You might find a thousand here and there. Lol

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=81883941
Karin. I think you will find that what IB says you can short and when it comes to actuially shorting that particular equity even if it is above $2,50 is a different story.

At THINKORSWIN when I have tried to short I can confirm the order and then I get a rejection. For example I spent 3 hours one morning begging kicking and screamning at them tryinmg to short a $7.00 stinky that now has SEC fraud charges.

I even had some sort of superviosr monkey on the phone and I related the whole song and dance. I even suggested he personally short it even if he would not let me short it LOL.

I also spent some time on Bay Street ( Canada's Wall Street) and know a lot of folks still there slinking around in their $2,000 greasy suits. I dont even know what an impressive number is for a suit these days. Mine normally involve a collar with a Titliest Logo on the short sleev shirt and a nice breathable pair of short. Anyway not one of those folks has ever pointed me to a back door to find someone to allow me to short pennies.

Now about 10 years ago I thought I was on to a broker in vancouver that was going to let me play that game. he wanted a $50k retainer or something and they closed up shortly thereafter so Im guessing I would of not seen that money back.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=81885594
Well here is the fun part, lets just say you finally short the stock in question and we will just say you had the funds to meet the maintenance margin. Once you got the shares you will be paying a premiuim daily on those shares. So one may think they can hold until the cows come home to reach their objective. Well that daily rate is eating away at your profits, known as "decay". Further the fact that you have a huge amount of capital tide up for a period of time means your not making any money on it, not even interest.

That is why even when one does short a micro cap security it is not very profitable, the risk vs reward is not worth it by a long shot.

They only people that can do so and make it worth while are financiers hedging against their own newly issued block of shares to insure profits.

This is why short interest never maintains a consistent level on these securities because nobody can do so for a long period of time.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=81895215
The borrow rates on pump and dumps at Interactive Brokers are often quite low. Of the stocks I am currently short, the highest APR I am paying is 5.8% - xxxx xxxx xxxx xxxx

Of course borrows are very, very difficult to come buy so there are very few who can make money shorting pump and dumps.




In Reply to 'tduggan'
I believe what she actually said was that the last time she checked, her broker had no shares available to short. In prior posts she has also explained a lot about what is involved in shorting an OTC:BB stock.