If I am wrong someone feel free to jump in, to begin with I have never shorted a stock, BUT , I think I know a few things about it. One thing I think I know, is that in order to short a stock, it has to be done in a margin account, and the stock must be able to be bought on margin, EGAM can not be bought on margin. And if I were to short a stock, it definitely would NOT, be a $3 stock. What is the potential in shorting a $3 stock ? $3 is the potential, and the only way you're going to achieve that is if the company goes out of business. Not a likely prospect here. The risk/reward ratio here is not on the shorter's side, and anyone shorting a situation such as this, IMO is a fool. I doubt that shorts are a factor at all in EGAM.
P.S. Experienced shorter's correct me if I am wrong. |
