Claritas Pharmaceuticals Inc V.CLAS.H

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[Sacloco]

That's a really good question because most people don't really think about the down side of shorting when they start doing it. The scenario you mentioned is scorched earth outcome, worst possible thing to happen but it CAN happen, and if the SP skyrockets after the halt your stuck. That would be some really bad luck, and you would have to short a huge amount of shares, so you gotta be reasonable. Typically you would issue a stop-loss buy order at a certain price and if the SP increases it triggers the stop-loss order and closes out your short position, you lose some money but hopefully not a ton. However this is also risky because perhaps the SP goes up high enough to trigger the stop loss but then starts to drop again. My intention here is provide a little insight into how these types of stocks operate whether its cannabis, mining, penny stocks, pharmaceutical etc. I definitely do want to insult anyone and I apologize if I have but these companies play the market just as much as their industry. A small business that does not trade on a stock market( not listed)would never last 4-5 years if they didn't produce any products, how could they? These companies manipulate the market in order to stay alive, pay themselves and continue on. They always hope to hit it big, but THEY still make money either way, WE lose money cause the SP never goes up unless they consolidate the shares but then our #of shares drops and we are in the same boat. They will issue themselves millions of shares at the new increased SP and make a ton more money..round and round we go. I've been burned my fair share and it sucks, but eventually you can see it a mile away. Traders make a killing shorting these stocks....