Wow, crazy talk about comparing apples to oranges. LOL However will toss those numbers right back at you and show you where you went wrong here. I might add getting into a conversation about short selling is really not what this forum is about and I would like to add I have never been short NOT, nor do I care to be. None the less here goes and hope you can follow.
Using your numbers your saying an investor took $60k and bought 150,000 shares of NOT at $.40 per share. NOT goes up to $7 per share and you sell, you cash out at $1,050,000. Take the $1,050,000 cash out and subtract the $60k intial investment and your profit = $990,000.
Now the short seller goes short at $7 he shorts the same 150,000 shares at $7 and doesn't cover until NOT hits $.40 The short seller realizes a net profit of $6.60 per share. Take 150,000 shares X $6.60 = $990,000.
I hope this clears up any confusion about short selling or going long. In all reality they are the same thing, both styles of investing include the same two basic principles, a buy and a sell.
Al