But first I should mention that market cap is way off. It's 48,589,352.7 doing the math of the closing price today. If you're going by a broker like TD, they almost always have wrong market caps for OTC stocks. OTCmarkets.com has the up to date figures.
Yep, almost exactly my calculation. Still, it's pretty crazy to short that much of a stock with this potential. The new custodian of this stock is the same guy that ran TSNP from the double zeros to $1.92 by reverse merging HMBL into the dead ticker, TSNP. So it just makes no sense why anyone would bet against someone who did that, let alone 60% of the shares.
My only theory is that big money just shorts practically every penny stock in existence, because 98% of the time they make bank. And retail hardly has the ability to short pennies unless you go to a really obscure broker that still requires 4x leverage. So in the vast majority of cases, it works out for them. Makes sense.
History is obviously not guaranteed to repeat itself, but George Sharp has proven himself someone interested in cleaning up the OTC markets that are otherwise so rife with pump and dumps and complete scams. He worked for almost a decade as a scam investigator on the OTC and now he's an active investor in making deals. I'm essentially betting on him with this one.
That actually makes sense. You'd think these people would be smarter than that, but then again, some of these same people apparently didn't see the huge red flags with 140% of GME shares being shorted.
I don't have your courage to make these big investments into penny stocks though (or maybe, I just haven't done the research necessary to create the necessary confidence).
So what is the appeal of merging a company into a dead ticker? Isn't it giving a windfall to the shareholders of the dead ticker?
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September 1, 2003; November 4, 2007; September 2, 2013 Congratulations to DP Oblivion in the Guru Contest!