Replies to post #25580 on Newlead Holdings Ltd. (fka NEWLF)

[CaffeineDream]

That depends on the broker. Brokerages such as Scottrade requires you to cover the stock within a reasonable time (Usually a day, or else they will do it themselves for you). It is due to their policy of not allowing investors to short OTC stocks, or stocks that are under a certain restriction. I'm not really sure about smaller brokerages however.

Which one are you currently using?

[powerbattles]

You are corrected. Short don't have to cover right away but as soon they will have to call in to cover simply due to no more short available on OCT. When the uptrend occur... short unable to short to hold PPS down, this will created more buyer and others shorties MASSIVE PANIC >>> imaging the broker line getting too much volume call in then you will be standing in line waiting for a long long time just to get your turn to cover your short position. This is why situation like this is so rare to occur. Massive PPS increase could happen soon...JMHO.