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future1

12/17/11 11:54 PM

#60310 RE: Think or Swim #60308

Think or swim I try to learn from everyone whether I agree with their position or not. Your last comment on micro cap stocks is accurate as I have discussed them with members of the DD board.

Shorting does take place in penny stocks without being some conspiracy. Ask Tim Sykes

The reason I asked you the question I did was to understand what happened during the AMWI run. Everyone said there were virtually no shares available to short.How is that possible? I believe the brokerage houses wouldn't offer any to retail because they were shorting (legally) themselves. Why wouldn't they when it was an obvious P&D

It only makes sense that this happens more often than we know.

Honest thoughts please
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critterman

12/17/11 11:57 PM

#60311 RE: Think or Swim #60308

agreed, and well said.One can only wonder where this will all shake out,,meaning the pennies. However this is a producing jr miner and it can only get better from this point forward.IMHO
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future1

12/18/11 12:21 AM

#60312 RE: Think or Swim #60308

Interactive Brokers seems to be by general consensus the place where much retail shorting starts. The thing that is not put out there is where do they get their shares to short?
Can't any brokerage house short any shares they know clients hold in margin accounts? If they can legally "borrow" them, then they can legally use them to short.
That's an incredible amount of shares in any stock.
This doesn't even include shares the MMs can legally short to make the market.
Seems like there is an awful lot of availability here.

Brokerage houses get caught shorting and simply pay fines admitting no wrong. Unfortunately those penalties are usually handed down well after the fact, and for far less than was made during the process