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Old 03-29-2009 | 12:29 PM
  #47  
SpiraMirabilis
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Joined: Feb 2009
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Never short this kind of stock with these volumes and fluctuations, are you insane?

I too bought some stock when it was between 4 and 5 cents. I had a trigger set to buy some more (more than 50,000 shares) at 3 cents but it never tripped, which leads me to believe that the period of time it was at a penny was someone who wanted the price to drop doing a large block trade with himself (or herself.)

In any event, this stock has been moving greater than 20% daily. It's not wise to short it, especially given the low value of it. If you buy a stock, the greatest loss you can have is your initial investment and the most profit you can make is an unlimited amount of money. If you short a stock the greatest loss you can have is an unlimited amount of money and the most profit you can make is doubling your money.

You short today expecting the price to go down after the past week's runup, what happens if tomorrow the Delta ruling comes out in favor of Mesa and the price jumps up to a dollar? Even if it is only a dollar for a few days before dropping down, you're stilled screwed if its a dollar when you have to pony up those shares.
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