Bennett,
I don't know if I was a little hasty on the registration/take delivery kick. I'm just so damn angry at how the shorts stomped on the stock...
Anyway, I was told by several brokers that I trust, that if your
shares are in a cash account and not margined, those shares cannot be shorted. And as only shares usually over $5 a share can be margined, only these can be shorted.
However, from the market makers point of view when the stock has a gap up and is generally thinly traded, he can short a position at a high price for himself, and then cover that position later on down the line when he figures that buying will dry up. He just buys shares from the small fry that get frightened and sell, usually at a loss. MMkrs make major money doing this and that is what happened the last couple of months.
But shorty had a nasty surprise with the news that suddenly started to happen, especially with the Energy Tax Credits. The stock gapped up, whereupon shorty starting placing additional selling pressure on the stock through his shorts, and the stock petered out and deflated. That is why I have been so adamant about helping the company to build visibility in online investor community. GRNO only started trading publically in April, although they have been a fully reporting company for two years. (That's what the SEC requires in a Sec 15(c) 211 public offering.
I apologize if I led you astray. I still trying to grasp all of the intricacies of the marketplace myself.
Regards,
Ron |
