posted on
Jan 11, 2008 12:10PM
IMO...what you've seen the last two days are the MM's who had to buy at the lower prices from .47-.49 and didn't want to hold the shares in their inventory...raise the pricing at the end of the trading day to clear their books of unwanted shares. They're not making a killing but they're ridding themselves of shares they don't want to hold in the company inventory. Most trading houses don't allow the MM's to be short shares or hold shares in their inventory at day's end when the shares are BB stocks. Most have a policy of "non-ownership" of any stock listed on the BB and under $5. They have to trade it because they are listed MM's, thats what they do...make a market...but in most cases they want to be at zero at days end, so they bump it a little to get it to where they can sell what they had to buy or lower it to buy back what they had to sell short at days end.