SHORT a Penny Stock?? [such as Princeton]
I was reading the Globe & Mail (20 April issue) listings
on Short stocks. The number of short positions against
Princeton Mining has increased dramatically from 6,500
shares SHORT [on 1 April 96] to 1,000,000 shares SHORT
[on 15 April 96]. This in part explains the heavy
resistance the stock hits each time it tries to go up in
price (?).
I think SHORT is the wrong position, but I acknowledge it
may take a couple of years before Princeton's BIG earnings
from Huckleberry start to come through, .... so a SHORT
seller could have some fun (but also take a lot of risk).
I've occassionally gone SHORT on a stock that is between
$5.00 to $20.00, .... but NEVER a penny stock. I don't
believe my discount broker (Bank of Montreal Investor Line)
will even let me SHORT a penny stock.
Has anyone any thoughts on this?
[I happen to be LONG on Princeton, and would enjoy seeing
a SHORT squeeze, .... BUT I think only 1,000,000 shares SHORT
is too small for a SQUEEZE given the 40,000,000 share float].
Lee |
