Easy to explain, there is no broker I am aware of in the USA that will allow the shorting of a sub penny stock by retail investors.
Market makers typically can short such stocks for a day or two and FNRA does report short positions, from what I am told by market makers.
The website you mention in the past had some sort of formula they used to estimate such short sales, and the little I know it wasnt considered that accurate but I note they now mention it is from teh FNRA short reports which anyone can access. I havent gone back and checked whether his figures match those reports. In any case my contention is few market makers will engage in any sustained shorting , and at most 7 to 15 days with extensions etc.Generally marke makers work against their net working capital and like to close out positons quickly. Kind of like convertible note holders, they couldnt care less what price is , just volume and spreads.At least that is my understanding.
I agree though the drop in price is simple to explain, increasing amount of shares being issued because company needs money- and shares being issued at a discount to the market. And demand hasnt kept up. Poor marketing, lack of credibility in management and company, poor market conditions all factors.
Anyway company needs money and will keep issuing convertible notes to raise funds, issuing shares for servcies, and appears will continue the marketing by silence strategy. How can anyone be surprized price is trending down the last months ?
AI
