Replies to post #34931 on Hangover Joe's Holding Corp. (fka HJOE)

[JRF21]

Ok. I'm in. Just Put my 3mil. Up for sale @1.oo...

[oilfieldmafia]

Look man even I know Noone is dumb enough to short a .00 penny stock, it makes no sense for anyone to do it. Shorting penny stocks is just a myth that longs in penny stocks use to justify declines in PPS, instead of facing the facts that either the stock is a scam or the mgmt are morons (hjoes case).

[taken_green]

Agree and thats what I've been doing. Have my shares locked. HJOE$

[I-Glow]

Most OTCM investors don't have margin accounts - if you have a cash account your shares can't be borrowed.

But, there is shorting on HJOE - it is a sub-penny.

As has been explained you would need $2.50 per share in a margin account - so for a million shares you would need $2.5 million in a margin account and you would control about $3000 in HJOE stock - it isn't economically feasible to short a penny stock.

Q.: What can you do to prevent your shares holdings from being shorted?

A: Now what can the average personal investor do to stop their own shares being shorted, as believe me your own broker, if approached, WILL sell your own shares that they hold on your behalf as a nominee account.

There are two things you can do, the first is to certificate them but this is not obviously to everyone’s advantage but the alternative solution is simple. All you do is to phone your broker and put an order in saying that you wish to place your shares for sale at, for arguments sake, double today’s price. As they are 'on order' they cannot be lent out by your broker and in turn you are reducing the amount of 'free shares' out there that can be used for shorting purposes. And don't forget to move your limit order up when the price starts to recover, then, that way your shares can't be shorted - not much but helps :D.

Although an individual personal investor will not normally have enough shares to halt a concerted shorting attack, if a large number of holders did this it would reduce the overall amount of shares that they could get their hands on.

In my opinion well worth doing if not only for the knowledge that your own shares cannot and will not be used in a short attack against the very share that you own.

Complete nonsense - there isn't a short attack and your shares in a cash account can't be borrowed.

Why don't you call your broker and ask to borrow a million shares of HJOE stock to short.

IG

[TenKay]

All they need to do is keep the shares in a cash account which is what most penny investors use anyway. Shares cannot be lent from a cash account...they can only be lent from a margin account.

The rest is complete nonsense...and typical penny drivel.

[janice shell]

All you do is to phone your broker and put an order in saying that you wish to place your shares for sale at, for arguments sake, double today’s price. As they are 'on order' they cannot be lent out by your broker and in turn you are reducing the amount of 'free shares' out there that can be used for shorting purposes.

That's bs. Just more Message Board Mythology about shorting. If you don't want your shares lent out, get a cash account. Simple.