Balmoral Resources Ltd BALMF

Lets KILL the short weasels.

[Chaulkdust]

The below is not investment advice and may or may not be correct so use the information at your own peril and perform your own due-diligence.  The below mainly applies to stocks on the OTC but I would imagine that same logic applies to the Venture exchange?

How can traders sell a stock and buy it right back (within a 30 day period, or even within 1 minute). It’s called a WASH SALE and has some tax implications as far as claiming a loss but is totally legal. If you have a Day trader account (which requires a margin of at least $25,000 in either cash and/or equities in your account) you can perform as many of the wash sales as you like. For normal accounts if you do 4 or more your account may get suspended but you can still do a few.

So if I was this 100 share trader I would be selling 100 shares with a limit price of .084 and then turn right around and issues a buy order at a limit price of .085. If everything goes smoothly I buy back the shares and force the closing price down to .084. If someone else snaps up my 100 share I just do it again.

So a short seller (someone who sells shares they do not own and are borrowed from a broker) and may be lent out of your account! Unless the broker requests the shares back the borrowing can on indefinitely. The short seller waits for the stock price to decrease and then buys the same amount of shares borrowed to close out the short position with the broker. Assuming they can find someone out there now willing to sell their shares as they see the stock price declining. The profit they make if the difference between what it cost to initially borrow the shares (which they didn’t pay for) and the cost of buying back the shares if the stock price drops. They basically have possibly used your shares to accomplish this nasty feat without your knowledge. The shorter only loses if they have to buy the stock back at a higher price than what they borrowed it for. The broker can force the shorter to do this if the stock price dramatically rises and threatens the Margin account limit but this does occurs to often snice the shorter would just change brokers to continue the dubious act.

Your stocks, if held by a broker are subject to be borrowed by a shorter who also resides at your broker. The simplest way to make your shares UNAVAILABLE to be shorted is to place a sell order (good until cancelled at a high price) for all you shares at all your accounts/brokers.
So I have placed several sell orders at all my different brokers for all my shares at a limit sell price of $1.00. This will prevent the broker form lending out my shares since they will be temporarily removed from the pool of stocks that can be borrowed at the broker. Since I would happily take $1.00 for any shares sold of BALMF on the OTC exchange I can sleep quite nicely.

Just something to consider and costs absolutely ZERO but if enough folks do this it may help stifle any short sellers at your broker. It may even cause a broker to force a shorter to cover their position, forcing them to buy shares at the prevailing price (but I’m not sure of this).