>According to the Trade Summary Matrix on Bloomberg today, 75,500 >shares trading at the offer vs 45,600 at
> the bid and 74,100 in between and it was down 11/16... That just >doesn't make a bit of sense. 66% more
> traded at the offer than the bid and down a significant 11/16!!
I have a uneducated guess what might be happening: Perhaps when the stock was at 7 dollars a share, a market maker took a large position in this stock and is now trying to get rid of the risk/shares before earnings. So on low volume days the price goes down.
For example a market maker decides to sell 50,000 shares every day.
At 11 dollars a share 5,000 are bought and 2,000 sold from the public
but then there is no activity
so the market maker drops the ask to 10 3/4
15,000 are bought at 10 3/4 and 5,000 sold by the public
and so on until the 50,000 shares are sold to the public
The market maker drops the stock even though the public is buying rather then selling..
The market maker can be either selling shares it already has or it can be shorting the stock.
Also this means that only one or a couple market makers are buying and selling this stock on low volume days. |
