Replies to post #91996 on Bayport International Holdings Inc. (BAYP)

[DragonBear]

I thought it was said that there cannot be any shorts on a penny stock?

It merely requires $2.50/shr margin requirements. Brokers tact on a few other extras as interest. Example Short trade:

Short 100K shares of BAYP at 01. Cost to buy shares $1K. But in addition there are margin requirements tying up another $250K.

So for the potential of a $1K return assuming BAYP goes to 0.00, and waiting N months or years to get there, they have $250K tied up in equity account value during that time. So that is the best trade one can make with an account value of $250K+?

It isn't as simple as a Short shorting with $1K against 100K shares is it?