Friday, December 06, 2013 11:26:53 AM
The scenario suggested is some evil Short decides to Short 1M TRII shares at 02. Let's do the math:
1M shares Shorted at 02. The target price for covering is 002. Potential gain: $20K-$2K = $18K.
Amount required for deposit into your account to meet Margin requirements: $2.5/shr * 1M shares = $2.5M.
OR
One could take their $2.5M and go Long into an oil stock I've been waiting on at $100/sh, yielding 25K shares. TP to sell $135. Potential gain: $35K * 25K = $875K.
So if one had $2.5M to meet the margin requirements for shorting 1M shares of a microcap penny stock, with a potential return of $18K, or go long in a NYSE oil stock with a potential return of $875K, which one would you go with?
Why is it always assumed the whole stock market revolves around microcap penny stocks?
Here we go with the nns myths again. What has been stated where?
One has Duncan needing to sell over 300M shares while he still can. That's called selling pressure. And surprise the PPS is going down. Therefore the conclusion should be it's some evil Short conspiracy??? Uh huh.
The Jewel of the Mind is Colored with the Hue of what it Imagines
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