Replies to post #12902 on Innovation Pharmaceuticals Inc (IPIX)

[TOB]

Yes I agree completely. The amount of margin required and the vig (premium) make shorting penny stocks very unappealing. I have an Interactive Brokers account, so I can short pennies, but never have for the reasons you post.

I don't see shorting as an issue for CTIX until (hopefully) we are exchange listed and above $5. Any selling we see is likely profit taking, not shorting.

So this pretty much rules out retail shorting. What's left are MMs, and specialist funds, but I don't see CTIX as an attractive candidate for the funds. They want to short quick spikes, not long-term up-trends.

The MMs can be a pain with an OTC stock, no doubt, but just part of the game we have to suffer until when and if CTIX gets a proper listing. It is important IMO is watch their action and stay disciplined in buying and selling to avoid getting sucked into helping the MM make his daily book.

[vip1999]

WOW, that is a lot DD you did and They make perfect sense to me. All I knew up until now is... I can't short anything below $5(Etrade rule). I try shorting FB when it first IPO and no shares were available. I called the broker and said that must be some shares you can borrow for me to short and he said, Sorry sir, you account does not allow you to short... that is when I find out my IRA account can't short anything!!!!

Rules, rules, rules... Thanks KarinCA, You have provided a lot of value on these boards.