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Hi Pete. What I indicated was if I were them I would do as they are doing. Whether it is illegal is another question. Asnd has well over 150 million shares, since the MM hold the stock as inventory, and if they only held 10% for inventory that would mean about 15 million shares in their hands. Since ASND is traded on nasdaq, 6 million shares is 3 million bought and 3 million sold, or roughly 20% of their inventory turning each day.
As to whether it is legal, they can sell their inventory for any price they want, which means that if they sell a few large blocks at the right time to cool off a rally then it is a small price to pay to keep the public believing what they would have us believe. Thus John Q, Public sells and they repurchase the shares. Does this happen, just read the WSJ, last week there was an article stating collusion occurs and sometimes the MM have to pay the fines.
While my numbers may be crude, the less inventory they had, would explain the highs we just experienced. Occasionally they lose control of the stock price.
Whether I would do it, we will never know since I am not a MM.
Ted |
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