FAMH - FIRAMADA Staffing Services Message Board

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Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services

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To: dave brown who wrote (10503)	4/3/1998 6:03:00 PM
From: David A. Irvine	Read Replies (2) of 27968

Dave Brown, Yes, the MMs make money on the spread. (The [usually] tight spread on FAMH is a good sign, IMO.) They also make money by selling stock they don't have (i.e., shorting). The ultimate goal of shorting a stock is to not have to ever cover it, which does happen. If MMs do have to cover, they want to price to be as low as possible so it won't cost them much to do it. I do not know, but if there are illegal short positions in FAMH, those MMs will be trying desperately to keep the price down. They might even pay a little cash to someone to bad mouth the stock as an engine to push the price lower. You also stated: <<< 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. >>> My point exactly. Supply and demand is great, and that is (closer) to how the stock price is set on Nasdaq, and even more so for the NYSE. On the OTC:BB, MM manipulation is much more prevalent then on the Nasdaq or the NYSE, which is why everyone wants off. -Dave

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