Medical Industries Of America, MIOA Message Board

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Biotech / Medical : Medical Industries Of America, MIOA

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To: The Pope who wrote (358)	10/17/1997 9:18:00 AM
From: lostmymoney	of 570

Just an opinion but it seems like MM's inventory, The MMs don't immediatly match buyers and sellers. They take in shares when you sell, anticipating that there will be buyers. If a stock is trading at 1 1/4 by 1 3/8 and you sell at the bid they are looking for a buyer at the bid. There may be a large demand for the stock, so they move the ask up, but MMs are greedy. They'll keep the bid where it is hoping to frustrate some holders and the MMs get some cheap shares to sell. The spread is now 1 1/4 by 1 1/2. When you sell, the MMs might hold. They feel that the stock is going up. Once they have enough shares the spread can move up. First to 1 3/8 by 1 1/2 and then eventually to something like 1 7/16 by 1 9/16. With the latter spread, the MMs are selling the shares from their inventory at 1 9/16 that they took in for 1 1/4. This example is an MMs dream but I meant to describe a possible situation and how MMs acquire inventory. Hope that I make some sense. Mike

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