Global Platinum & Gold (GPGI) Message Board

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Gold/Mining/Energy : Global Platinum & Gold (GPGI)

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To: Randall E. Brubaker who wrote (7114)	8/28/1998 7:54:00 AM
From: Richard Mazzarella	Read Replies (1) of 14226

Randall thanks for your well thought out post. Shorting a less than $1 stock is extremely dangerous unless one has an ace in the hole. The risk/reward is terrible for that bet if just a guess. GPGI could easily get a buyout or JV offer that moves the price to $5 or more overnight. People have gotten seriously burned shorting stocks even like AOL where there is lots of room on the downside. Most of the short attacks for penny stocks leverage real internal company problems, usually a sure bet. What could be the "ace in the hole"? There are a few that I can speculate about. The first is that the recovery cost is actually higher than published. Another could be a refining problem. There may be regulatory issues that grind GPGI down. I guess what I'm saying is that there may be items that we don't have specific knowledge. Because of the risk/reward shorts usually do better research than longs and are very smart. I sure hope it's not shorting that's pressuring the stock.

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