MMs and the lack of liquidity.....
posted on
Mar 02, 2016 04:03AM
Warning, stream of conciousness post coming up....either skip it or get a bevy in hand.
Another day and another round of very light trading....which has become the norm. In fact its been more than 3 months since we've seen even a paltry 100K trading in a single day. Even 100K against the outstanding share count is less than one tenth of one single percent.
Very little buying, very little selling.....Lack of supply? Lack of demand? Both? I seem to be the only one who believes there is demand, but that a lack of supply is keeping the buyers in check. Others seem to be of the opinion that if there were buyers out there that they'd just start buying and the PPS would move up.
Which got me to thinking....
Leaving aside any big players who may or may not be lurking in shadows, waiting for shares to become available....I have zero doubt that there is almost zero interest from retail investors, leaving aside those of us who are already shareholders.
And why would retailers pay any attention to RVX? Sure we're in a phase III trial in, but its not a trial yet sanctioned by the FDA. Sure we've got a very promising Epigenetic compound/drug with the potential to have a hugely positive impact on CVC in a host of indications....but there are tons of publicly traded bios out there that show promise for a host of diseases including cancer.
The proof is in the pudding, or so the saying goes....and when it comes to stocks the pudding is the direction of the PPS. If our PPS were rising substantially then I don't doubt for a second that we would attract at least some retail interest....investors who would conduct research and due dilligence in an effort to discover why the share price is climbing.
So here we sit....with a PPS that is trading sideways and down.
Our "friends" (sic) the Market Makers could move their bid and asks higher....But why would they? Nobody it seems has sell orders for their shares at any price. So if the PPS were to start climbing and attracted some retail buy side interest....Where would they get the shares to trade except by going short?
And so we are forced to sit and wait....and wait. Maybe somewhere Mortimer and Randall Duke are sitting in a chaffeur driven Rolls Royce listening to Valentine telling them to let the price drift lower as holders worry about being able to afford the GI Joe with the Kung-Fu grip....and maybe at some point Billy Ray will tell them they've shaken out the suckers and to start buying.
I'm hoping anyway.