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Microcap & Penny Stocks : JTS- "A Nordic Drive in Every PC and laptop"
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To: tmitchy who wrote (1162)8/16/1997 9:27:00 AM
From: Ben Antanaitis   of 1985
 
If the 'buyer' was a MM or a group of MM's then there may not have been a 'real' buyer. The MM was providing the function they are there for. They provide 'liquidity' and a market for a stock issue. If the MM wasn't there and someone 'dumped' 1.65 Million shares on the market, the price would have gone to .01 or less. But the MM absorbed the stock, realy only a drop in the bucket in the scheme of things for a MM.
There are also times when a company has to maintain a minimum market cap and therefore cannot let it's common stock go below a certain price and must absorb shares when the market cap is threatened. Why would a company need to maintain a market cap at a minimum level, well... they may have to have a min MC to retain financing or lines of credit or keep institutions that have MC level requirements to maintain investment in a company.
So, the fact that someone dumped 1.6M shares at the bid is more pessimistic than the fact that the MM stepped in and absorbed them.
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