Ram, There could be many reasons to sell, and an instant 25% profit to provide cash to put elsewhere in such a hot market isn't such a bad idea. At this rate, they wouldn't be liquidating their entire position unless they kept it up every day for nearly two months. My only reason for speculating that it might be them was based on the observation that *someone* was selling a lot of shares to the MMs without the bid being dropped on them. When I say a lot, I mean a burst of 10-15,000 shares or more, in a few minutes' time, without any other transactions occurring. With the overall low volume, those trades stand out. Then, at other times during the day, even a couple thousand shares on either the buy or sell side would instantly draw a reaction from the MM, resulting in a shift in the bid or ask. This indicates that something is different between these trades, and the best guess would seem to be it has to do with who is doing the trading. But the inevitable consequence is that the MM ends up with a lot of shares around the price of 7 1/2.
Just sharing some observations.
Rich |
