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Non-Tech : Meet Gene, a NASDAQ Market Maker

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To: Dan Duchardt who wrote (768)8/25/2000 8:33:56 AM
From: pezz  Read Replies (2) of 1426
 
Dan I have often seen the scenario you describe but have a different take.

After seeing your stock's run up stalled there is a long suffering large player [who perhaps in this case bought the IPO ] that wants out. Volume has dried up and he/she has missed the opportunity.

What to do? Begin selling at market small amounts [ not to show your self thus not to frighten potential buyers ] to delibertly drive the price down to a point where liquidity comes in to absorb your stock. [ the real buyers you speak of ].The mm's do not step in to support the price as they are aware of the sellers strategy and of course have no intent of stepping in front.

If the scenario you speak of now shows large volume at these lower prices this would be the successful conclusion to the sellers strategy.

Of course this might be all wrong but if I held a large position in a thin stock and wanted out it's what I would do.
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