Brian, after reading the posts about SBUX I am just about ready to jump back in, but unfortunatley I transfered my cash from SBUX to a tech company called Key Tronix corp. KTCC in what I thought would be a larger potential for a percent gain once the stock began to appreciate. (I have not given up hope just yet, My cash is allocated for long term hold in either case, I believe in KTCC regardless of what I am about to say about my motivation for buying it)
My, luck the stock was touted by Bob Toomey from Piper Jaffery here in Seattle and I bit. The stock goes down within weeks, Word around town, Toomey knew about a drop in orders at KTCC and hyped the stock so others could get out. I made a measly %19+ on my Sbux, Sold at 18. as I remember. Could have done so much more after my stuff doubled from the spilt, thus the tears in my Columbian supremo.
This hobby I have taken up is frought with many a pit fall.
The least of which is my inexperience.
On to another subject.
I am trying to figure out what happens on the trading floor between MMS. I am developing a theory based on the limited knowledge I have collected. See if I am understanding this right, if you care to.
A small cap stock under five, traded back and forth between MMS to up the vol. appears to be gaining strength, investors buy in. The stock climbs but there is nothing in the fundemantals to justify the increase in price. Maybe the company has a good chance of going places and the mms no it.
Subsequent to a run up someone attempts to take profits, sells w/ market order at a current price say twice what he paid.
THe stock highs and lows that day show a drastic drop , from 1.25 to .19 but the stock closes at 1.24 Did the guy get the 1.20+ for his stock, assuming the spread was not more than .05?
If he put his order in as a limit, are the MMS obligated to trade the stock or buy it, or can they ignore it and let the order go unfilled.
Does this kind of thing happen? just to "penny stocks" or stocks over a five dollars?
I noted the pattern on one of the stocks I am charting and I have wondered about what caused the anomaly ever since.
Thanks for your info should you decide to respond, Brian
Or anyone else who has an idea.
Jim |
