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Gold/Mining/Energy : Maxam Gold Corp. OBB:MXAM -- Ignore unavailable to you. Want to Upgrade?

To: goldrush2001 who wrote (10861)	8/8/2006 9:31:23 PM
From: paunch13	Respond to of 11603

Ron, In the last several months there has been more than a million shares bought that what was sold so I figured the MM 's are almost out of shares and they need more shares so they are willing to allow the bid to stay the same . JMHO. John

To: goldrush2001 who wrote (10861)	8/9/2006 1:57:12 AM
From: ijre	Read Replies (1) \| Respond to of 11603

It is relatively simple. One or more of the MM has an in house order for a large number of shares at a set price as the selling come in the stock is purchased for the customer. Since the MM is protected on the buy side the bid remains the same. If the MM sees selling coming in he can make an additional profit by lowering the offer and selling to other just above what his client is willing to pay. Everyone is happy, a narrow spread and a stable price. As the stock is cleared up at a certain range, no selling coming in for a few days, the buyer or buyers move up the price. The idea is to take out all the low priced stock prior to a pump. The problem is that this can take a long time especially in case like Maxam where the management gave away or sold stock at very low prices and large blocks of stock. A million shares buying in a month is nothing. At that rate it could take 2 years. On the other side of the coin such buying prevents wide swings in the price like we have seen in the past. The only question is why such a sophisticated buyer is interested in Maxam.