US Stem Cell Inc (USRM)

[Dragon Lady]

" MMs won't let us run"?

MM's, aka "market makers" don't "let a stock run" or "not let a stock run"? That's not their function. They, the MM's" do just what their name implies, they "make a market" in a particular stock or many stocks. Meaning they're there to match buy and sell orders and when needed, provide liquidity/inventory when a mis-match occurs, insure an orderly flow and execution of orders, etc. They make their money "on the spread" between the bid and the ask they quote.

http://www.investopedia.com/terms/m/marketmaker.asp
http://www.sec.gov/answers/mktmaker.htm

If anyone is "not letting it run", then it means there are more sellers than buyers, and typically, nothing more complicated than that. Other than perhaps, in the case of a company like BHRT who regularly relies on the likes of ASHER and Daniel James and Fourth Man, etc for convertible share death spiral financing on a regular basis, it "might" (though they're not supposed to supposedly, but many believe they all do it one way or another, aka Asher, etc) it "might" mean some shorting of the stock also. Because the lower the price goes, the more the death spiral, convertible debt "finance house" will profit. Look at the recent 10-K/10-Q filings for BHRT, the "financing deals" using convertible debt are giving 45% to 47% discounts on the shares if converted, using the "reset" provision- that's the part that reads something like, "the conversion price is determined by the average of the trading price over the 10 days prior....".

http://www.sec.gov/answers/convertibles.htm

http://www.investingadvisers.com/finance/articles/the_mysterious_world_of_death_spiral_finance.php

http://hartleybernstein.over-blog.com/2014/05/at-death-s-door-death-spiral-financing-the-name-says-it-all-it-conjures-up.html

The stock selling off and going nowhere essentially is not the fault of some MM. It's the reality of not much buying and more sellers than buyers.

Look at who and what that "Maxim Group" does- they include wealth mgt and investment banking services among other things. They might be the very people being used by some of the insiders or large "mystery" shareholders to unload large blocks of shares for um, IMO. BHRT has handed out 10's and 10's of millions of shares of stock for all sorts of stuff to all sorts of people- just read the 10-K and 10-Q filings: Everything from "notes payable" to "accounts payable" to "for services rendered", it's all over the place in the SEC filings. When a large insider holder or a "big boy" holding say, some of the 50 MILLION warrants that BHRT handed out like candy, or who got one of these 5 million share or whatever blocks for something like "services rendered", when they need to sell, they don't typically open an E-trade account or something IMO. They're gonna, IMO, use exactly someone like this Maxim Group- someone who has a trading desk probably or connections to one, who has a main-line to the trading networks, etc. That's how it's done.

Who might be selling? Who knows? BHRT handed out, aka diluted over 200 MILLION shares in just the past approx. 1 yr and a boat load of warrants too- so the common shares floating around out there in someone's hands are huge, and many are priced at like 1 cent to maybe 1.5 cents (same for warrants, someone could exercise their warrants at strike prices of maybe 1.5 cents or something like that- which means BHRT does get some cash, but there is also more huge dilution then). Someone, IMO, could easily still be selling in this price range in large blocks- as they'd still be doubling their money or better, if they'd gotten their shares at the 1 cent range, maybe 1.5 cent range.

Dilution HAS CONSEQUENCES and convertible debt "financing" using the likes of the ASHERS of this world, HAS CONSEQUENCES. There's volumes written about it on the web by professionals, including the SEC and similar agencies.

Here's the I-HUB 'ASHER" page someone put together- a great explanation of what typically happens to stocks of companies who make use of the likes of ASHER and similar firms and convertible debt to finance their operations:

http://investorshub.advfn.com/~-ASHER-~-25451/