Shorter understands the true value of your shares and he is trying to dupe you out of yours. He will short 100 shares hoping you sell 200. He covers his trade and pockets the other shares at a sizeable discount. All this shorter needs are the gullible investors commonly referred to as "weak hands". A small example will help one understand. You have a used car which KBB & Edmonds says is worth $10,000. You place the for sale sign on the car and are willing to part with the car at fair value. Along comes a buyer who offers you only $8,000 for your car. He is trying to "short" your car. Do you sell? Probably not, however, in the stock market the shorters floats their lowball bids, it is reflected as the most current stock trade flashing across the wire and suddenly the "weak hands" get nervous that someone placed a low bid and they sell. Weak hand selling is of course the very outcome these hucksters are tying to accomplish. This type of behavior happens all the time in life unfortuantely, the snakes prey upon the weak and ignorant. Think of spam in your inbox - these shills are also trying to get you to part with your hard earned dollars. Do you pay any attention to them? Probably not. Should you pay attention to the lowball bids these hucksters are floating on your PM mining shares? No, defninitely you should ignore the same way you do with spam.
The underhanded shorter and the true investor know the real value of the shares and where they are headed. When the shills try to ply their trade in the market there are only two actions one needs to take: 1) Ignore them, just like you do spam in your inbox. 2) Take advantage of the opportunity they are creating for you to pick up shares on the cheap - you won't be the sucker selling at a discount, but you can take advantage of the poor fool who does sell at rock bottom prices and pick up a few more shares.
Remember, if nobody is falls for their ruse and if nobody gets head faked out of their shares they can't play their game. Let them short sell shares! They have to buy back eventually.
I don't think anyone is shorting a 65 cent OTC stock. Augme has to prove they can become profitable and the pace of growth has to pick up as well, the street isn't that impressed with 15-20% growth in what most are saying is the next marketing explosion space, if both happen then its a grand slam.
well, i think it's more than they aren't impressed w that kind of growth...it's 15 - 20 percent / QUARTER...so thats about 100 percent growth per year...i'm pretty certain if ppl had confidence in those numbers, the stock wouldn't be at .65.