Replies to post #218805 on KMA Global Solutions International (KMAG)

[TenKay]

Ahhhhhh....yes....the great question in the life of a stock. Given that if one believes in the great NSS on KMAG and the apparent ability to hide it for years and years it leads to that question....if they exist do they have to ever cover???

Well....given that not a single short squeeze has EVER occurred on a penny stock as a result of a massive hidden NSS there are really only two possibilities...

1) that there has never actually been a massive hidden NSS on a penny stock

Or

2) the evil NSS'ers are 100% successful.

Take your pick.

[janice shell]

There's only one difference between ordinary shorting: to short in the ordinary way, you borrow shares that you then sell. You wait for the price to drop to whatever your target is, and then buy to cover. To short naked, you don't borrow shares; you just sell. When the stock hits your target price, you buy to cover, curing the failures to deliver caused by your original sales.

The advantage of shorting naked is that you don't have to locate stock to borrow, and you don't have to pay the fees associated with stock borrows. But you do still have to provide margin, and that margin will increase if the stock price rises. Your broker and/or clearing agent will not be willing to assume your (very considerable) risk. That money will be tied up until you cover, so it's in your interest to do so. There's no sense in waiting years to squeeze out a few extra percentage points on your position.

While naked shorting is not illegal, since the institution of Reg SHO in 2005 it's been against SEC regulations, and serious penalties may be levied against people who violate those regulations.

KMAG never went much above two cents. So I don't see it as offering a lucrative opportunity for shorts of any kind, at any time. There've been far, far better prospects out there.