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Microcap & Penny Stocks : Microphonics Inc. (mrps) -- Ignore unavailable to you. Want to Upgrade?

To: $Mogul who wrote (359)	2/25/1999 2:02:00 PM
From: VINCENT MALGAPO	Read Replies (1) \| Respond to of 8189

I have never seen this many cancelled trades before. What's going on? They might be trying to make it appear that there were a lot of sells to drop the price... Vince

To: $Mogul who wrote (359)	2/25/1999 2:07:00 PM
From: Lee Walsh	Respond to of 8189

MM's always trade amongst themselves.... read my post from raging bull...when a guy posted about why 2 20,000 share "buys" didn't move the price... You need to understand the difference between "retail" and "wholesale" Retail trade, (what you and I do) moves the stock.. This is mostly in the form of smaller buys/sells 1000-5000 shares mostly. When many retail investors place buy/sell orders the MM's move the price accordingly. Wholesale trade, (what MM's, fund mgrs, Institutional investors...AKA Heavy Hitters) do is the block trades that you are seeing. They go directly to the MM's and make "deals" for blocks of stock. This doesn't affect the price. Certain big investors may be working with MM's to take blocks out of their inventory. Sometimes you see these big block trades go off between the bid/ask spread, or sometime you see these above/below the spread. Also, when MM's buy to cover their short positions, these are usually in the form of block trades, many times at the bid and usually doesn't affect the price. In fact, a sure sign that a MM is covering short positions is when you see a big block trade at the bid, then the bid moves up. You may ask, why do MM's work with these "heavy hitters" differently that with you and I. Well think about it, most of these big boys are well known, are established customers, with big bucks, and generate huge trading volume for the MM's they work with. It just stands to reason they would get better deals. They make "deals" on other stocks the MM's are trading. If a heavy hitter is holding a large inventory of one stock a MM is short and need to get out of a jam, the MM contacts him and makes a "deal" for a block. The heavy hitter might deal like this..."Ok, I'll sell you a block of "x" stock, but you have to let me have "X" amount of shares in "Y" stock at this price...which is probably below the market price... Lots of stuff behind the scenes that we never dream about in this business. A good sign for the stock is block trades. It is my opinion that several big investors are accumulating this stock, and it is just a matter of time till the MM's allow it to pop. A big accumulator will make some deals, accumulate a big block of shares then push the retail market to increase a price... You and I just try to go along for the ride. Lee