>>>>>
As I have asked before, and never gotten an answer: if the MM's are
indeed shorting (and I believe FAMH has 12 MM's... what a conspiracy
that they should all try to short at once... and the SEC never catches
on?) then at what level do they plan to cover?<<<<<<
MM's 'always' short together, it's called 'churning', it gives the 'illusion' of volume and selling and is used by MM's to create panic selling on behalf of those short and naked.
Look for buying on the bid, when you see buys on the bid you see MM's selling to eachother.
The SEC acknowledges there are abuses by give MM's some room to create 'liquidity' in the market, unfortunately for investors, this freedom has been abused and is now even more harmful as the internet has been intergrated into the MM's arsenal.
MM's hope to never cover, and hopefully terminally short a stock to zero. In fact, a legitimate 'scam' is a shortsellers wet dream, they can illegally short a stock, never have to cover and be applauded as 'consumer advocates', this is why they are so quick to compare a company to GIFS, SEXI or BRE-X.
Asking why a MM would short a penny stock is answered by why you would invest in one. If a stock is $.02/share and goes to $.04 you make 100% profit. On the other hand, short a BB stock from $.02 to $.01 , and you create the volume on top of it, you bet you'd hire guys to slam these stocks all day.
Pugs |
