short-sale-Pinnacle-ResearchAs a shareholder or potential shareholder of Resort Savers, Inc. (RSSV), you may have noticed the decline in the price of the stock. We have been informed by our analysts, that they believe this price degradation was caused by short sellers.

This has become even more evident now that RSSV has published and filed some very impressive fundamental numbers with the SEC. The increase in assets and cash flow are substantial and might be causing short sellers some concern, since they would not like the stock price to increase.

Please allow us to define the term “short selling”:

Short selling is the selling of a stock that the seller doesn’t own. More specifically, a short sale is the sale of a security that isn’t owned by the seller, but that is promised to be delivered. That may sound confusing, but it’s actually a simple concept.

When you short sell a stock, your broker will lend it to you. The stock will come from the brokerage’s own inventory, from another one of the firm’s customers, or from another brokerage firm. The shares are sold and the proceeds are credited to your account. Sooner or later, you must “close” the short by buying back the same number of shares (called covering) and returning them to your broker. If the price drops, you can buy back the stock at the lower price and make a profit on the difference. If the price of the stock rises, you have to buy it back at the higher price, and you lose money.

When this occurs, with any stock, the only way to combat the short seller is to consider increasing your position in the stock at the ask price. As always, the final decision is yours, we are only providing you with the information that might stem the tide of the short seller and possibly increase the value of your holdings.