Replies to post #49318 on In Ovations Holdings Inc. (INOH)

[VeronicaFox]

Shorty is a claim used on every pink sheet stock, yet this is how shorting actually works - we will use $0.0006, the number you provided:

First find a broker who will allow shorting a stock in INOH's price range, most don't allow anything under $3-$5. The only known U.S. Broker that allows shorting stocks at this level is Interactive Brokers. Another is Suretrader, a non-registered Broker in the Bahamas. The number one negative regarding Suretrader is that they are not a Regulated U.S. broker, quite a large sum of money to hand to a Non-U.S. entity that may close on you at anytime.

Hypothetically speaking, let's say one starts a short with 10M shares of INOH @ $0.0006 - That's about $6000 for the principal and $2,500,000 in Maintenance Margin as well as at least 102% of the principal in what is called Supplemental margin. There will be about 20% in fees and commissions. IF a successful short is made, gains are capped to 99%, HIGHEST GAIN POSSIBLE would be about $4800. Meanwhile over $2,500,000 is at risk.

That's why position size in the OTC is insignificant.

Lastly, The broker reserves the right to PULL the position at anytime - gains are CAPPED to 99% - losses can be INFINITE.

Now think about it, someone will put up over $2,500,000 for a maximum gain of $4800? Did I mention gains are capped but LOSSES can be infinite?

The FACTS are clear and anyone can read the Bi-Monthly Short Interest report provided by FINRA that shows Short Interest is in fact an INSIGNIFICANT position of trading in the OTC.

In FACT, not opinion, INOH has NO current short interest, and has never had significant short interest. "OTC Shorty" is merely folklore, trying to get investors to believe that short squeeze and/or short covering will raise the price of the stock or to explain why the stock is dropping in price. It merely plays on investors non-understanding of the shorting issue to make them believe that something is happening that is in fact NOT.

someone somewhere shorted into the mini run we had to .0006, and if they are waiting for .0002 or .0001 to cover they will be squeezed out when this runs north. Just because FINRA doesn't show any short interest doesn't mean that nobody in the world is short INOH.