*AV* -- Well Kevin, I said I read the thread and they seemed to have come up with some answers to the short issue. I do not know if they are valid, just that they had a response. I do not know if they are correct since my personal beliefs are more in line with your comments.
My experience with shorting seems to indicate that:
1) Stock is over $5
2) Funds are kept in the account and you pay interest on the short
3) It ties up a great deal of your margin capability.
4) Usually done on Big Board, AMEX, or NASDAQ
5) Maximum short allowed is some % of the available float.
My information is very limited since shorting is not really in my bag of tricks and I have only done it a few times (less than 5). So I am not an expert or a source of information.
A huge short position on all 250,000 shares would only be less than $350,000 which is peanuts in the scheme of things. Huge short on number of shares maybe, but definitely not on cash value.
My questions have yet to be answered or may have been by Jeff. IF good things are happening, it should be easy to take out the float and have insiders retain 100% of the potential profits. Go private. After all, a $1.38 with a potential to go to a minumum of $3 or $4 is at least a 150% gain and possibly a 300% gain. Sorry Charlie but I would gladly give you $ 375,000 for all 250,000 shares (at $1.50/sh) knowing full well that a $3 purchase of the company is around the corner for a 100% return. As I said, it sounds too good to be true.
However, own 50,000 shares for $1.38 and bleed it off to those ready to jump on this stock at $2 or $2.50, and you get a return of $31K to $46K for the effort. Nice if you can do it.
As for me, our little discussion has prompted me to this decision: I will be watching from the sides and see how it plays out. Who knows, it might be the next TPRO or the next USAG. If it goes the way of USAG (or SBET), it will have been a waste of time to watch. If it goes the way of a rocketship, it's another thing to flog oneself with.<GGG>
Andrew |
