Replies to post #278020 on Kraig Biocraft Laboratories Inc (KBLB)

[Money4Nothing-M4N]

"It is very difficult to short penny stocks on the OTC. Most brokers don’t allow shorting them and the ones that do charge more in fees than the profit one would realize. The margins can be huge as well. "

Yes. True for the average law abiding investor. But the manipulators that do it are offshore using omnibus accounts that have the capital to do it. It is definitely NOT John Q. Public that's doing the shorting. No one should trade on the OTC without knowing what a cesspool it is.

Here's some light reading on the subject:
https://www.sec.gov/comments/s7-29-22/s72922-20153799-321641.pdf

[want2retire]

Instead of blaming short sellers and the market makers, assume that people pretty much expected today’s news and are looking for something more dramatic to ignite a feeding frenzy.

I doubt anyone expected yesterday's news to send us to the stratosphere. The discussion was around the impact of short sellers, not what yesterday's news was going to do.

For someone so willing to ignore the data in front of them and instead spin off into musing about what else could go wrong (like whether Kraig can safely transport eggs without blowing a tire in their refrigerated trucks to today, still wondering if there will be any end market for spider silk), seems odd that we should now just bull ahead based on what is the simplest answer. Sometimes it's not that simple.

The share price did end up rising quite nicely yesterday. Could very well be the MM's held cover trades until later in the day and instead started us off with downward pressure in hopes of freeing up some shares for shorts to use to cover. Difficult but not impossible to manipulate the market.

Borrowed from another group, reacting to action a couple days ago:

A followup to yesterdays short selling info. It is Short Selling 301, and if you are new to investing, it will probably make your brain hurt. It will however give you some insight into how manipulative short selling is, and why I wish it didn't exist.

Here are the numbers we know. I'm only going to use 'dark pool' stats. At the start of the day yesterday, we had 875,174 short shares showing. At the end of the day, the shorts had mostly covered, and there were 142,767 short shares remaining.

875174 - 142767 = 732,407 covered short shares Why is that significant?

Total volume for yesterday's trading was 509K shares. How did 732K short shares cover on 509K volume? The true answer is too complex for a short post, so here is a link for those of you who don't mind 'brain pain'. If you want to avoid that deep dive on the 'dark side', the simple answer is manipulation by the market makers. At the end of the article, you will see that the SEC had studied the problem and had a solution. They chose to side with the market makers instead of the public. Kind of a 'don't bite the hand that feeds you' decision instead of protecting investors.

And also, the link they provided. https://fintel.io/article/short-volume-its-not-what-you-think-613?fbclid=IwZXh0bgNhZW0CMTAAAR0W9VS-5gHwnMglCqjKk7hTtR-1YOA3ZQCl6j_5S8WpLhK3mP7X_gTtH7c_aem_LJ4ZO5HQdDZHwd3qLiS9Mg

Yes, more patience is needed (another odd acceptance based on past history) but plenty to familiarize ourselves with as we pass the time.