FAMH - FIRAMADA Staffing Services Message Board

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Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services

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To: David A. Irvine who wrote (10498)	4/3/1998 5:43:00 PM
From: dave brown	Read Replies (2) of 27968

Why do you think the MM's do not want the price to rise? I think you give MM's too much credit. MM's make their money on the spread and volume, not the price. If they buy from you at a bid price of .63, that becomes their cost. Why would they want the price to go down? Any offer price below .63 means they lose money on every share they sell. MM's just want buyers and sellers. The main inefficiency I have seen on BB stocks is the spread getting to wide (i.e. BID .02 OFFER .10). Even after the merger the price will be set by the market. Investor's will not pay $9.00 a share just because a MM's set that as the price. If there are no takers at $9.00 the price will come down to a point where someone is willing to buy and someone is willing to sell. The MM's will make their money on the spread.

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