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  4. Rocky Mountain High Brands, Inc. (RMHB) Message Board

The shorters make their money by borrowing shares

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Post# of 75380
(Total Views: 687)
Posted On: 09/09/2021 5:15:15 PM
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Posted By: adirondackhi
Re: sweetpea73 #69453
The shorters make their money by borrowing shares from a broker and selling them at or near the top of a run like we saw following the posting of the 10-Q. Once the run tops out and the volume begins to drop off, they work at walking the price down selling small blocks of shares to bargain hunters which will quickly drop the price as buying pressure drops off as well. They now step up their buys with lowball bids, scooping up cheap shares to cover the borrowed shares which they will receive a margin call for, meaning they have a specific amount of time to pay the broker back the borrowed shares. The difference between what they sold the borrowed shares for and what they paid for the cheap shares for is theirs to keep, minus capital gains taxes due the following year. The same flippers, as well as others not shorting the stock but nevertheless anticipating a rebound or a strong bull run in the near future, will slowly load up with cheap shares to flip again when the next run is up well and still has good buying pressure. MM's too. They are free to trade from their personal accounts as well as executing trades for clients. Over and over again. Only strong demand disrupts that cycle and allows the pps to run hard and settle at higher levels of support. It's coming for RMHB as each successive financial report proves the strong growth they are now generating.


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