I don't think there's much shorting going on below $1.50. Most of meat is gone. What you're probably seeing trade below $1.50 is the ex-patient longs that are finally selling out for fear of being the last ones to hold the bag. The selling continuous selling pressure since last year has worn them down. The negative momentum is in auto pilot now.
Regarding shorting NHMCF, I'm quite sure that if you provide the broker adequate cash collateral as security margin, NHMCF can still be shorted. If the stock goes up, they have the cash collateral to buy it back. There's the margin. I know of a few Canadian brokerage houses that will do it if you want to. Just got to put up the money.
Re $6 million cash in the bank. Do you remember NHMCF $ net loss for the last year end (April 98)? Where they conveniently changed their year end date to accommodate their employees summer holidays? <chuckle> Well, hope that they can start to just "Break even" soon or else you know where they'll be spending that cash. Remember the interest payments for the second debenture & some of the infamous First? some goes there. Remember all those current contracts & future contracts with big $$$ amounts? They never stated the terms (time period) so let's say its 5 year. (called to check because they're the masters at vague NRs) Now div the $amount by 5 (years); div 12 (months) div by 2 (generous 100% mark-up from cost of prod) you end up with a conservative operating cash req for that contract. They get terms from suppliers, they give terms to buyers, they have inventory (hopefully with not too long a standing period). They need to sterilize their product (takes time, the clock is ticking). Say that they have a one month period between the terms they get and the terms they give where you're going to need your own cash. Now as the sales grow (that's their plan anyways), that amount of "bridge financing" is also going to grow (from where? debenture III? at these prices? ouch!). Now heaven forbid that they don't get paid on time or that one of their buyers encounters financial hardship and is unable to pay. Now we're just talking about the Core packaging operation. Remember all those mediocre so so companies NHMCF acquired with a Private Placement and the infamous Firts debenture? Well, let hope they don't need a bit of cash injection in this fiscal year while they try to integrate into NHMCF. Do you now see why I regard $6 million as peanuts?
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