Rick D.. I like your weekend Top 40 show.. oh wait, that is Rick Dees.
More seriously, regarding your question of market makers.. they can short a stock. More importantly, they can naked short a stock meaning they dont even need to have the shares in hand.
Im not saying this is the reason the stock price hasnt continued its increase, but from reading the posts of a market maker or 2 in the past, its really a mind game with them. What they "show" to people with Level II (showing bid/asks etc) is not always their true intentions. They might sit on a bid or ask to give an idea they are willing to buy or sell, when in fact they want to do the exact opposite. There are people who make a living "battling" the market makers so its a mind game between the 2 of them...
After reading this over, this might not make much sense to someone new to the stock market, but just understand that market makers play a lot of games .. they make money by pocketing the spread, and occasionally buying and selling for their own pockets.. and they have the power to subtly influence the price which is a heck of an advantage over us. SO volatlity and "panics" either upward or downard are to their advantage.
Last, the OTC-BB is a market makers paradise and they dont want to lose a stock like this (gaining attention) to NASDAQ or AMEX (which are more regulated) so this could be yet another reason to "try" to hold the price down.
Ok..really last, the stock market is supply and demand. With enough demand, it wont matter what the market makers do. Hopefully, that point will be coming soon.
Doing something,
Mark |
