Isoman, two questions:
First, If a restricted share holder were to sell, why the 30 day wait? Are there restrictions on the restricted share holder normally that would prevent them from buying again for 30 days, or were you just taking into consideration that in 30 days, we'll have a new tax year. I was under the impresion that if someone wanted to sell for tax purposes, they could sell, and turn around and buy them right back. Could be my impression was wrong , too.
Second, I understand how MM get caught shorting as the price goes up, then will manipulate the stock to shake out the profit takers to get the stock down to a level where they can cover at a profit. They've had more than enough time to cover all that at a pretty low level. But how would they short a stock that is not moving up, to get a lower price? Usually, when a stock is being shorted, nobody really knows it untill they've read a short intrest report, and either take a short position them selves, or sell becouse they figure there will not be enough long positions taken to effect a price increase, thus supply and demand moves to the sell side, and down we go. So, any way, my question is, just becouse they may have shorted (which would pretty dumb at these prices IMO, unless the seller wanted to do the MM a favor by letting them know in advance what they were going to do, just to give the MM a Christmas present), how would the fact that a MM took a short position, affect a lower price?
Now, I could probably see that if there was going to be an aquisition and the aquired company was given XXX dollars worth of shares at a price not to exeed, say, .025 cents, and they hooked up with a MM to drive the price down for a short period of time through manipulated bid/ask offers in order to get more shares for there agreement , but the fact is, that most of those transactions are done thru private placements, rather than on the open market, at a predetermined share price.
Any comments (realistic) would be appreciated.
Me still think it was tax loss selling by large share holders.
Me still think they'll be back soon too. |
