LED Medical Diagnostics Inc LEDIF

RE:RE:RE:RE:RE:NEWS - GUIDANCE NOT MET - A MISS

[ledrog]

I have no aversion to playing the short side, check SeekingAlpha where I write on blog under the nick Joe_Retail and my commentary on Ziopharm.....starting in March at $13+ and calling it a bubble. 

With that being said, shorting a stock at $10+ is one thing.....shorting a stock trading for 14, 15 or even 18 cents....that is too much risk for this cowboy. 

Say you want to make $5,000 on a short play, that's not a huge reward in my books.  If you were to borrow say 60,000 shares and sell them for 18 cents...then the sale would net you $10,800....which would have to stay in your brokerage account., plus about another $25,000 to cover your margin.

If, as you predict, the PPS falls to .09 and you're able to buy them back at .09 cents....the purchase would cost you $5,400....for a piddly little gain of $5,400 while you took on a HUGE risk.

What's the risk?  Look at what  worthless garbage stock like CYNK did not too long ago....it went from .05 cents to over $2.00.....I doubt LMD could ever get pumped that high given Gane's histotry, but back to 30 cents for a day or two....I don't think that's impossible.

If you wanted to make around $10,000 using your 18 cent to 9 example....then instead of 60K you'd be selling 120K....and avg 3 month volume here isn't even 100K.  Good luck trying to cover...60K could be impossible.  

To sum up.....short any stock trading in this area?  You gotta be nuts, or you better have industry friends who'll manipulate it for you.