Mesaq Stock
 

Mesaq stock up over 45% today in heavy volume. Anyone got any insight?

Yeah, it's worth 2 cents. Does not take much to get it to move. Short sellers love cheap penny stocks

You can always buy the crap -- good luck selling

Why would you say that? There's no place for the stock to go.

You can buy a crap load of Mesa at the low price and it will cause the price to rise a lot in one day. Now that you are sitting on all those shares you can "borrow" more shares of Mesa from a broker on a short position. Now you are holding purchased shares and "borrowed" shares from a broker that will need to be repaid at the sale price + a commission. Since the stock is still cheap and volatile you can dump all of your purchased shares to cause the stock to dive bomb and be able to cover your shorts with a nice profit.

Unless the rules have changed since I was in the business, to borrow against that long position, it has to be a marginable security as defined by Reg T of the Federal Reserve. Penny stocks are not marginable and if you find a broker that is willing to lend you money against it, you'd better run cause he doesn't send letters to collect on money he's owed ---- if you follow my drift. Remember --- the only collateral the broker has to cover his loan to you is the stuff you own. If you happen to have a nice diversified portfolio and are dabbling around in penny stocks, sure he'll let you borrow to buy more penny stock --- but ---- it's the other stocks that are securing the loan and they are at risk when you start facing margin calls.

All it takes to make a penny stock double in price is a good, shotgun, bit of spam. "One month ago, our firm listed XYZ as a 'Strong Buy'. Last week it went from $0.03 to $0.07. We are are forecasting it will reach $0.75, a ten fold increase by the end of the month." A bunch of suckers buy, and the price hits a quarter, and the spammer sells his 832,715,025 shares and triples his money.

problem is with such low volume of trading you can't unload it so essentially it's still not worth anything.

My brokerage account won't allow any stock under $3.00 to be shorted. I'll do some digging on Monday and see if I can give my .02 on the original poster's question. If you guys like to trade airline stocks, AMR makes a pretty good trade lately buying around 6.23 or less and selling around 6.37 or more. If they beat on earnings on the 20th, should see a big pop.