Replies to post #57595 on Sunergy, Inc. (fka SNEY)

[risk on]

Ok, you just went into a whole new realm of impossibilities. On the surface, that would sound a good theory, " know what's coming and take a short position"pp. BUT......in order to short an OTC stock, you need $2/ share in margin for every share short. In order to make any decent profit in relation to the risk( no one knows exactly what will happen to a stock) then a shorter would need say 2mm shares to make it worth. That means they would need the $50k + to borrow the shares, then an additional $4mm in margin. That is why so few ever do short pennies. And please don't bring up Sykes, he is the exception, and his margin requirements aren't like a layman's.