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dmort545

09/21/16 1:21 PM

#1172 RE: SanDiegoAlan #1171

After the good news yesterday we see the pps down.It doesnt make much sense.

gotinearly

09/21/16 1:38 PM

#1174 RE: SanDiegoAlan #1171

no, but I bet the MMs shorted the living heck out of it in the morning and are trying to cover it yesterday afternoon and today

ADVFN_franknstein

09/22/16 1:09 AM

#1175 RE: SanDiegoAlan #1171

Shorting of pennystocks aka short interest is rare because of the high expenses for that.
You have to have a margin of $2 ... $2.5 for EACH penny share you're shorting.
Means shorting 200k in RGBP needs a margin of 400$ ... $500k in your account, which you can't use otherwise as long as you're short.
I remember a guy who shorted a biotech penny and obviously forgot risks for his margin. The bitter end is described here.
Don't think that anyone here aboard has the monetary power for shorting RGBP or RGBPP in significant way.
Most of the time short interest (the real shorting) is confused with short volume (REGSHO).
Short volume is about possession and marking requirements according SEC rule 200.
Short volume means the MM for example* has an order to sell a block of $100k of RGBP. Because he's not willing to take over the usual penny stock price risks (R/S, bad news, bad fins, trading halt, SEC suspension) he's not taking possession of this position. Instead he's selling these shares without possession and is than "short" for these shares. At the end of the day he's "buying back" the amount of shares he's short out of the sell order and ends the day with net loss 0. Because he subtract his block trading fee (~1.5%) from price you get trades with 5 or 6 digits.

* It doesn't mean that RGBP is currently undergoing one of the described risks... at least as far as i know.