Maxam Gold Corp. OBB:MXAM Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Maxam Gold Corp. OBB:MXAM

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: goldrush2001 who wrote (10861)	8/9/2006 1:57:12 AM
From: ijre	Read Replies (1) of 11603

It is relatively simple. One or more of the MM has an in house order for a large number of shares at a set price as the selling come in the stock is purchased for the customer. Since the MM is protected on the buy side the bid remains the same. If the MM sees selling coming in he can make an additional profit by lowering the offer and selling to other just above what his client is willing to pay. Everyone is happy, a narrow spread and a stable price. As the stock is cleared up at a certain range, no selling coming in for a few days, the buyer or buyers move up the price. The idea is to take out all the low priced stock prior to a pump. The problem is that this can take a long time especially in case like Maxam where the management gave away or sold stock at very low prices and large blocks of stock. A million shares buying in a month is nothing. At that rate it could take 2 years. On the other side of the coin such buying prevents wide swings in the price like we have seen in the past. The only question is why such a sophisticated buyer is interested in Maxam.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next