>> hard to understand the logic for people who short 2, 3$ stocks. There is not much to gain and the potential loss is unlimited. <<
That's true no matter what the price is. Shorting, your maximum gain is 100% and
your maximum loss is virtually unlimited.>>>
percentage wise it's correct; simple logic - no
say, short 100 shares of 2$ stock, potential profit 200
loss - when stock moves up 1$, 100$
short 10 shares of 20$ stock, potential profit 200
loss - when stock moves up 1$, 10$
in high-tech the underlying value of stock is not that much of a gating factor in appreciation, one key area for appreciation is the product and technology that a company has and potentially will have, therefore, the percentage appreciation ratio does not really apply based on their original stock price; simply put syqt can move as much as a 20$ stock and even more in the same time frame - that's the real-life fact.
As for the mkt researchers, one should do their own test by getting the drive and use it - and not put much weight, one can find 100 reports and 50% said great!! and 50% said - not that great! why? most of them have their own agenda depending on who is backing the test and study
one thing is for sure though, there are hundreds of millions of PCs, many more are being bought, all have multi-Gig drives, the mkt for just backing these drives is BIG, and the potential for syqt to come out a potential winner is always a possiblity, especially when one has a very good start - it's always possible that with large volume production, syqt can make some profit and as always when high-tech hype is turn-on how high it will go is anyone guess. Just imagine at 28$, the loss for only a small 10000 shares of short interest will be 250,000$ (a quarter million!). Again, hard to understand who'll like to take this kind of chance - |
