Replies to post #13371 on Patriot Energy Corporation (PGYC)

[jpp09]

1) Yes you are correct, you can short a penny stock, however it is very difficult to do for the average investor. Many brokers have lower limits on what can be shorted. The shorted shares have to be on a shareholders margin account. Many brokers require a backstop (margin) of up to $.25 to $2 per share (i.e. to short 100,000 shares it would tie up $25,000 - $200,000 in margin). There may be some naked shorting, but the broker for that would have to be crazy to allow it.

2) Maramara Motorlu Araclar is a real company, I have no doubt they have a warehouse. The problem is that the real company has nothing to do with PGYC. Just go to their website, they state this is a scam: http://www.marmaraparts.com/default.asp?x=1

3) Both marmaragcc and alcosesgroup website were clearly frauds. PGYC sent out the PR. So either PGYC commited fraud or Alcoses group commited fraud. Both are in a "200 million dollar" deal. Most companies would have called this off by now if the buyer was sending them BS.

There is a 99% chance that this is all PGYC (IMO). The other 1% is there is another scammer behind all of this. There is no alcoses group, no deal, nothing, all was played out for a few million dollars profit. Think about it this way, there are probably 5-10 people involved here, they started this in mid February, it will be over in June. So they worked this for 4 months, they will end up with 3-5 million "profit", divided by 10 = 300k each for 4 months "work". Assuming their is some hierarchy, those at the top may have come out with $1million+ each.

[P2O I'm from MO]

has been shorted 170,003 shares on Jan 15th 2009...On March 31, 2009 405,971 shares were shorted

Those numbers are the open short interest, not how many were shorted on the day you
looked at them. It varies from day to day.

You can short pennies. It's just very expensive to do it in the US. Check out Interactive Brokers.
The problem is you have to put up $2.50 per share to short even a .01 stock. Hardly worth
it since the interest to be made on that amount of 'collateral' cash would more than
likely make up for the profit to be gained on shorting the shares depending on how long
it takes to close out the short position.

Regards.