Hi KMT and others, thanks for the responses. KMT said believe we were in the high $.20's at the time. From there he could have shorted it and continued to short down here using his own stock as collateral, no?
Yes, but that just explains how the stock got here! Once the short has occurred and the resultant suppression of the stock occurs, people cover. Covering normally creates demand. If they don't cover than there is no impact for the stock.
Realists explanation IMHO is very interesting and raises even the larger spectre of MM manipulation.
Message 5757988
Realist asked Does anyone know when a MM is required to cover, once a month, week, or never?
Now that you have raised these situations, I am no onger sure! I would have thought by end month, but is that really the case?
VInce said:In other words in order to hold the price if a SHORTER keeps coming in with market orders to sell somebody has to buy it and
bid it back up in order to keep some sort of price stability.
A shorters sell order is executed as a result of borrowing the shares. His reason for doing so is to reap profits by buying the shares back and returning them (to their rightful owner) at a lower price. What you have described is the process which got MDIN to this level, I agree. But, like you Vince, the process has to have ended by now, if not then they are presuming the first drill holes will have dust and honestly believe the stock will go further south!! Not likely!!
So lets suppose the millions of shares held by "dayton" or Darth Vader" are in fact not short, but long! Then Darth could continually flood the market on any chance of share recovery and therefore prevent it. Given the share volume each day...this would no doubt end in the near future!! Which would have the same effect as shorts covering, because the source of shares would dry up eventually.
I agree with Realist, in that any quirk with any stock and people will jump on the "short bandwagon" when in fact shorts likely have nothing to do with the stock. Its almost like, if a shorter is shorting your stock, we feel that our stock is "more important" and therefore demands the needed defence to ward them off!!!
Thanks for all the input, its a worthwhile discussion!!!
the Chief |
