1ST MIRACLE GROUP (MVEE), founders last co. went $0.20-$46 Message Board

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Microcap & Penny Stocks : 1ST MIRACLE GROUP (MVEE), founders last co. went $0.20-$46

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To: Leroyt who wrote (3406)	5/18/1999 10:23:00 AM
From: LegalBeast	of 5541

Leroyt, the answer is simple. IMHO, it is volume and greed. OK, look at it this way: The market makers make their money on the spread. Lets say that there is a .2c spread, and lets also say that the stock is selling for 10c per share and that the average daily volume is 10M shares. Not a bad day for a MM, but when the stock goes down to 5c per share with the same spread, the same amount of money coming into the market will result in 20M shares. Now, in reality, the volume will not double when the price dives in half, but they are betting that it will increase because penny stock investors have the ability to buy more shares for the same money. Hence, the MMs stand to make a greater profit with a lesser price. Now, consider that if you were a MM and wanted the price to go down, but you have the SEC to deal with if you simply force it down. How would you do it? Exactly ... you would get someone to come online and induce sales from the scared little guys who may well be betting the farm. Then, you sell it to the staunch longs and begin the cycle again.

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