SkunK SHORT ALERT!!!!

The 31 Oct short report (USA) has come out showing a massive % increase in short interest on GERS. I should be smart enough to know that no one shorts a penny stock. I would - except when I see the daily short interest is more than half the daily volume. It is obvious somebody IS shorting this stock! I see almost a 900% increase in short interest that closely follows the recent climb. On a temporary basis this can have a downward push on the stock since more shares are available to sell (inflationary). However, if the price does not come down, those shorts will be forced (eventually) (if they borrowed from an honest broker) to buy the stock at market price and sell it for their contracted price. This can cause a rapid increase in price as the shorts are forced to cover. We should see the mid-month short report next week.

Oct 31, 2008 167,463 short interest 894.55% increase 303,972 daily average 1.00

Go to this link and hit the "short interest" tab:
http://www.pinksheets.com/pink/quote/quote.jsp?symbol=GERS

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For an amazing story how this just happened with VW in Germany, and how the price of the stock shot up many times - read these articles:

http://news.sky.com/skynews/Home/Business/Wheels-Come-Off-Short-Sellers-As-They-Are-Forced-To-Buy-Soaring-Volkswagen-Shares/Article/200810415131864?f=rss

http://www.telegraph.co.uk/finance/newsbysector/transport/3281537/Porsche-and-VW-share-row-how-Germany-got-revenge-on-the-hedge-fund-locusts.html


SkunK

PS - If you think the SkunK just said GERS is gonna make Volkswagens - then you missed my point. You fail the quiz and need to re-read the blog. The possibility of increased volatility in shorted stocks - either up or down - is a fact. GERS is at the present time is a significantly shorted stock. Volkswagon is an example of a major company that moved 400% up by shorts having to cover. As far as shorts driving down a price - that is the reason financial markets all over the world have suspended short selling of financial stocks. No, I did not just say GERS is a financial stock . . . .

psst Options, QQQs, call, March. Close enough to the bottom for me. What a ride. Not recommended for delicate egos - you lose more times than you win. Gotta ride those winners!