Joe you suggested As you are aware, it is illegal to short a BB stock and I believe that Whittman Breed and Morrow & Co will succeed in getting the SEC to force the market makers to cover.
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While I support any fight against this WIDE SPREAD scamming of the OTC-BB investing public ...Bottom line... If the MM is asked/told to cover he does so IMMEDIATELY thusly:
Example using the MM Shwartz Cunningham Unterberg & Myers (SCUM)
either A or B is typical:
A) SCUM paints the tape with a "buy" of 400,000 shares at $.72.
Then a little later on the same day, SCUM "sells" 400,000 @ $.71 to $.73, usually in one trade on the tape, but sometimes two trades.
B) SCUM buys 400,000 shares at $.72 and within 5 minutes (before or after) another MM SLUG sells 400,000 shares @ $.73. Three days later the positions reverse. SLUG will buy 400,000 shares and SCUM will sell 400,000 shares.
After either A or B (above) the MM goes on his merry way, until forced to do it all over again. This can go on ad infinitum.
The reason this is allowed de facto, is that the is NO ENFORCEMENT.
The fact that the "trick" outlined above goes on, shows us the powers that be just pay this scamming of the public lip service, and look the other way.
Colin |
