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slickwillski

07/13/10 5:12 PM

#15180 RE: Beardeus #15178

SEE POST #15179

slickwillski

07/13/10 5:15 PM

#15181 RE: Beardeus #15178

read this from a like minded board friend of mine...


If you got the money to pay the interest ( which is incredible for stocks under a dollar) to sit on a short position, maybe.

And since almost all short shares available on penny stocks flow through NITE and if you want to let them know you're taking that position by having to use them ( since NITE is not only a MM ,but actively trade for themselves, and since they sold you that position and know you have it and for how much, and it's well known they will sandbag a huge short position for their own profit), maybe.

So if you are willing to deal with those two obstacles in shorting a penny stock, along with the inherent extreme downside risk in shorting, then the answer would be yes, it might be a reason to short.

But the truth is that shorting of penny stocks can be done, but is really just message board BS. Those two reasons alone keep big players from doing it unless it's a sure thing, and I mean like money in the bank sure thing. Otherwise it's mostly small individual retail high risk takers.