SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Microcap & Penny Stocks : INFE ... Infocall another Sleeper

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Devil's Advocate who wrote (8390)10/13/1998 12:27:00 PM
From: Sigmund  Read Replies (2) of 10343
 
<<< OK, let's suppose that you are right. Then, explain the wide spread.<<<<

Spread is $1/8 not much on an absolute basis but a lot percentage wise. My guess, just a guess, is that the spread reflects good commercial business sense by the MM's. If they lower the spread will they get enough more volume to justify the reduced margin? The larger spread also partially protects against risk of having inventory become less valuable both long and short.

If you were an MM with no inventory, would you reduce the spread?
If you were long, would you be anxious to sell shares now? If you were short would you want to buy shares? If the answer is yes to the last question, it is difficult to see how the bid keeps falling.

I wouldn't want to be short now.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext