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that post made my day
what a tease, I looked on marketwire site and saw this, I almost shi* until i saw the third word
Oct 13, 2010 13:05 ET
Golden Valley Mines Ltd.: New Joint Venture Broker's Fee Prospect - Arnold Township, Ontario
question? through their de-registration and re-registering the new company, can our shares become restricted?
i don't think we will see news til the deal is done. but i do think we'll see filings. they have done everything to tell us what is going on just takes time in my opinion. the RW, the website that says merger, private company owner already owns control of the public company, only thing left is the deal. for all we know they could have filed and got it kicked back for language or something.
yeah, not meant for a regular guy like me to understand
i think what i read in the rules is if there is no end date of the RW which there is not, then my interpretation is they have a "tender offer" for a "backend merger" which i guess would be a reverse merger?
so it says they have 90 days, so i would think it would be wise to hold strong til the end of the month as the form 15 says 7/30/10. i'll give them that
i'm trying to decipher this form 15, from what i see there is no end date on the form 15 so the info i found is this
http://www.sec.gov/interps/telephone/cftelinterps_exchangeactrules.pdf
Rule 12g-4
Following a tender offer, a company has sufficiently few shareholders to file a Form 15 pursuant to Rules 12g-4 and 12h-3. Subsequently, the company will have a back-end merger. The Division staff ordinarily will not accelerate termination of Section 12(g) registration under Rule 12g-4 where an Exchange Act event is anticipated. ACCORDINGLY, THE COMPANY WILL BE REQUIRED TO FILE A SCHEDULE 14A PROXY STATEMENT OR A SCHEDULE 14C INFORMATION STATEMENT RELATING TO THE BACK-END MERGER DURING THE 90-DAY PERIOD BETWEEN FILING THE FORM 15 AND TERMINATION OF REGISTRATION PURSUANT TO RULE 12G-4. (caps were me)
i also wouldn't expect anything from the company before 11-12 est time so the morning bidwhackers are gonna be sorry when news does hit. i mean if i was gonna get out i'd at least wait until the ceo of the company has his coffee in the morning and give him a shot at a filing
yup and on the website it says they have been changing their business plan for the last 2 years which tells me once they saw the real estate market tank they said wow we can pick these properties up for pennies on the dollar, and decided real estate is they way they should go. I live in CT and bought my house in 2009 and got it for35% less than the previous owner refinanced it for just a year before. and cali was hit really hard so anyone with a good chunk of capital could have made some good coin. from what I have read the real estate market is upticking now.
i agree, if you read the past few 10ks you can clearly see that these two are a pretty successful couple with Annette handling the money and Art doing the talking. if you look at the prior produce businesses they had 100mil in revenue combined. but seems like the economy and technology phased them out but it also states the freshveg was sold as it grew to be one of the largest of its kind.
ok on the s-8 they did a couple years ago this name was at the bottom i believe who received the 30k shares
MANAGEMENT, CONSULTANTS AND ADVISORS “STOCK-FOR-SERVICES” PLAN
for
GOLDEN VALLEY DEVELOPMENT, INC., a Nevada corporation
(Full title of the plan)
SAMUEL WIERDLOW, INC., 1400 Colorado Street, Boulder, NV 89005 (702) 979-4664
(Name, address and telephone number of agent for service
http://samuelwierdlowinc.info/blog/
whos sister site isdown the bottom
http://artfieldinvestmentsrdinc.info/
which looks more professional and i love what it says
am i fishing?
I would make sure you research on ent* because a lot of people were in that and lost big as they repeatedly failed to deliver. Also I'm pretty sure it is a diluted pig by now. And also if you don't know about the sre* connection check it out. All my opinion of course. Least icoa is an operating business. I only live about 30 minutes from icoa maybe ill stop by pretending like I want a job interview or something see what I can pry
Majority shareholder is CEO of evxa
I thought the 3 years was for goicng public from private through an ipo? And that it is the company going public that has to show the 3years fins? No? I don't really know much about this
seems to me they have done everything needed except the actual 8-k
also the RW from what I understand says they don't have to report anymore, and if they were trying to hide something why release the financials after the RW? TO KEEP THE QB LISTING? that is my guess.
maybe getting Adavco's fins is holding the thing up. I mean if real estate is their assets and it seems like alot of them, In this market your estimated assets could move around pretty quick. Right now real estate is probably a pretty tough market to put a number on things.
info for people who don't know much abot R/Ms like me.
http://investorshub.advfn.com/boards/board.aspx?board_id=7145
WHAT IS A SHELL COMPANY?
A shell is a company that is incorporated, but generally has no significant assets or business operations. Shells typically trade on the Bulletin Board or Pink Sheet markets and were at one point operating entities before ceasing normal business activities. Shells on the Bulletin Board are more likely to regularly file with the Securities and Exchange Commission than Pink Sheet Shells. Shell companies are often involved in Reverse Merger Activities with private companies that desire to go public.
Reverse mergers occur when a shell company is purchased by a private firm seeking to become a public company. Consummating this type of transaction involves an exchange of information and shares
WHAT DOES 15-12G MEAN?
"When a firm “goes dark” it deregisters with the Securities and Exchange Commission (SEC) and delists its shares. Deregistered firms are no longer required to make SEC filings such as annual reports, proxies, 10-Ks, 10-Qs and other important documents. And they’re no longer required to have annual meetings or elect outside directors.
To deregister, a firm files Form 15-12G (Securities Registration Termination) with the SEC stating its intent to deregister, usually by a certain date. Once that date arrives, the stock exchange or NASDAQ prohibits future trading in the shares. The firm’s shares are then relegated to the pink sheets, where liquidity is usually much lower. Although the actual process takes some time, the firm’s share price typically will decline immediately after the “going dark” announcement, since many institutions are prohibited from owning shares of firms that don’t file with the SEC or trade on the exchanges or NASDAQ.
Shareholder Action Plan
The lessons here are several:
If a company you own announces plans to deregister, don’t panic. If the fundamentals are intact, the shares are probably worth owning. Even in the less liquid pink sheets, shares of firms with improving fundamentals will appreciate. However, you should call the firm immediately to assess their plans for ongoing communication with outside shareholders. Ask the same questions we did of Southern Energy Homes—which gave the right answers. If you receive answers that indicate communication will be lessened, there may be some governance issues relating to the treatment of outside shareholders. For example, we would find it difficult to own shares of a company that provided only an annual report and had no annual meetings or election of directors.
Make sure the fundamentals are intact. Use the deregistration announcement as an opportunity to perform a thorough review of company prospects. Often a firm will deregister to help hide a deteriorating financial condition, bad accounting or other ailments
Fortune favors the bold. To be a successful investor you must have the courage of your convictions. That means if you’ve done your homework, don’t be afraid to step up to the plate, especially in the face of consensus opinion that’s going the other way. "
Courtesy of John Deysher (Complete Article Link http://www.aaii.com/commentary/articles/200601_stockstrategies.cfm )
==============================================================================================
What is a Reverse Merger with a Public Shell?
A Reverse Merger is a transaction where by the private company shareholders may gain control of a public company by merging it in with their private company. The private company shareholders receive a substantial majority of the shares of the public company (normally 85% to 90% or more) and the control of the board of directors. The transaction can be accomplished in as little as two weeks, resulting in the private company becoming a public company. The transaction does not go through a review process with state and federal regulators because the public company has already completed the process. The transaction involves the private and shell company exchanging information on each other, negotiating the merger terms, and signing a share exchange agreement. At the closing the public shell company issues a substantial majority of its shares and the board control to the shareholders of the private company. The private company shareholders pay for the shell and contribute their private company shares to the shell company and the private company is now public.
Upon completion of the reverse merger, the name of the shell company is usually changed to the name of the private company. If the shell company has a trading symbol it is changed to reflect the name change. An information statement, called an 8-K, must be filed within 4 days of the closing. The 8-K describes the newly combined company, stock issued, information of new officers and directors, a full description of the business, and financial statements audited to US GAAP standards. The 8-K must disclose the same type of information that it would be required to provide in registering a class of securities under the Securities Exchange Act of 1934.
(See Sec Final Rule 33-8587, pdf file)
If the shell company is listed on the Bulletin board, the registered or “free trade” shares can continue to trade. The company can do a private placement immediately. To trade new shares offered by the public the newly combined public company must first register the shares with the SEC. This process takes three to four months and normally requires filing a Registration statement with the SEC under Reg. SB-2 or SB-1.
If the shell company does not have a symbol, an application for a symbol is usually made to the NASDAQ Bulletin Board. The application for a symbol requires filing a Form 211 by a market maker that is a member of the NASD. The Bulletin Board has no financial requirements. A listing will be granted if the affairs of the company are in order and the company answers the questions posed by NASDAQ.
Advantages of Going Public Through a
Reverse Merger or a Public Shell Purchase
Increased Valuation: Typically publicly traded companies enjoy substantially higher valuations than private companies.
Capital Formation: Raising capital is usually easier because of the added liquidity for the investors, and it often takes less time and expense to complete an offering.
Acquisitions: Making acquisitions with public stock is often easier and less expensive.
Incentives: Stock options or stock incentives can be useful in attracting management and retaining valuable employees.
Financial Planning: Public company stock is often easier to use in estate planning for the principals. Public stock can provide a long term exit strategy for the founders.
Reduced Costs: The costs are significantly less than the costs required for an initial public offering.
Reduced Time: The time frame requisite to securing public listing is considerably less than that for an IPO.
Reduced Risk: Additional risk is involved in an IPO in that the IPO may be withdrawn due to an unstable market condition even after most of the up front costs have been expended.
Reduced Management Time: Traditional IPOs generally require greater attention from senior management.
Reduced Business Requirements: While an IPO requires a relatively long and stable earnings history, the lack of an earnings history does not normally keep a privately held company from completing a reverse merger.
Reduced Dilution: There is less dilution of ownership control, compared to a traditional IPO.
Reduced Underwriter Requirements: No underwriter is needed: (a significant factor to consider given the difficulty companies face in attracting an investment banking firm to commit to an offering.)
Disadvantages of being Public
either via a Reverse Merger or an IPO
Less Confidentiality – complete financial disclosure is required to become publicly held.
More Public Reporting – Reporting expense is greater because of the need for full disclosure.
Ownership Dilution – Owners give up some equity percent.
Greater Time Involvement – Management must devote additional time to public company operations.
Greater Liability – More company visibility brings a higher level of liability exposure.
Increased Expense – Higher costs of regulatory compliance for audit, legal and investor relations.
http://www.gopublic.com/reversemerger.html
===============================================================================================
A Great Example of a Low Floater 15-12G Run
FCNK (now RGNO) initial o/s 5M
5/26/06 -Nevada SOS reinstatement
10/3/06 -Filed 15-12g under Mark Smith
First 2 weeks of October 2006 -PPS peaked at $3.70 from 52 week low of .008.
===============================================================================================
rsi uptrending, cmf positive, accum still good
100 share paint was me
i like the ABC news clip
yeah how about buyinh that 15 mil at the ask? maybe we go to 5
a little info i found about RMs I'm not worried!
http://www.scribd.com/doc/3496018/Truth-About-Reverse-Mergers
242 ENTREPRENEURIAL BUSINESS LAW JOURNAL [Vol. 2:
B.Reverse Mergers vs. Self-Filings
The fact that an RM is really a means to an end (e.g., PIPE financing) and not an end in itself raises the question of why companies do not employ a different, and perhaps less costly, means to the end. Specifically, any company can go public in the RM sense through a “self- filing,” i.e., voluntarily filing an Exchange Act registration statement with the SEC74 (this is exactly what shell promoters do to incubate shells from scratch as discussed above).Historically, companies have typically gone the self-filing route, at least in part, because of time considerations.75 An Exchange Act registration statement requires extensive disclosures including a description of the company’s business operations, risk factors, finances, properties, and management.76 Additionally, the registration statement must include audited financial statements for the last two or three years.77 Putting together this disclosure for an operating company takes some time— typically, at least sixty days.Further, the registration statement does not become effective until sixty days after filing and may be scrutinized by the SEC prior to effectiveness, resulting in required revisions.78 Hence, it will take a company at least four months from deciding to pursue a self-filing to the registration statement becoming effective and various securities regulation clocks tied to effectiveness will not start running. Conversely, by merging with a public shell, historically an operating company could reduce the four month or longer timeframe to as little as a few weeks.79 For a company running out of cash, this timing difference could be critical to its survival.An RM is quicker than a self- filing because a public shell, by definition, has already been registered under the Exchange Act.The operating company succeeds to this registration, which typically dates back at least a year (meaning various securities regulation clocks tied to effectiveness began running a year or more earlier),80 upon completion of the RM.Hence, with an RM, there is no need for the operating company to prepare and file an Exchange Act registration statement. This RM time advantage, however, has greatly diminished, if not disappeared, with the new shell company rules adopted by the SEC in June 2005.81 Under these rules, a former shell company (i.e., the newly public operating company) is required to file with the SEC within four business days after the RM closing the same information (a description of company’s business operations, risk factors, finances, properties, and management, audited financial statements, etc.) required to register securities under the Exchange Act.82 Prior to this rule change, former shell companies could delay disclosing much of this information for up to seventy-five days from the closing of the RM.83 Hence, required SEC disclosure preparation would not impact the timing of an RM closing because there was plenty of time post-closing to prepare it.With the change to four days, this is obviously no longer the case. As a result, RM closings now have to be delayed so that the operating company can prepare the necessary disclosure in advance of closing in order to meet the greatly shortened deadline.As the SEC pointed out, “we believe shell companies should complete a transaction that is required to be reported only when they can timely provide investors with adequate information to make informed investment decisions.”84 As noted above, putting together the disclosure required to register securities under the Exchange Act typically takes at least sixty days.Therefore, the new rules essentially increase the timeframe for an RM by sixty days and thereby eliminate the time advantage RMs have historically enjoyed over self-filings. The remaining advantage RMs have over self-filings is the involvement of a shell promoter.Reputable shell promoters are RM experts.They have facilitated numerous RM transactions and therefore can provide invaluable advice from experience.In addition, they will likely have contacts with brokerage firms who could potentially serve as market makers in the company’s stock post-RM (a company has to have at least one market maker willing to quote its stock in order for the stock to be quoted on the Pink Sheets or OTC Bulletin Board)85 and PIPE investors interested in RM companies.The question is whether this expertise and these contacts are worth $100,000 to $400,000 in cash plus a 10%-20% equity stake.For many companies, the answer may be yes because there is little point to a self-filing if it will not lead to PIPE financing, and PIPE financing will be difficult to secure if no one will make a market in the stock.
i think buyback is his only move. but not 100% necessary. like what has been said before there is companies with worse SS moving into the pennies just need buyers.
also i think the AH prs don't help as much as morning or afternoon prs do, which tells me the ceo is not trying to hype anything. We take care of the hype
yeah forward split would kill this imo. we would go down to .0001 and probabally stay there
somebody said r/s. sorry for the misdirected reply
i think the share buyback is his next move. seems like this ceo is too mindful of the shareholders, to do a r/s and still invite people to a conference, he might get killed. if he isn't buying them back already i expect it soon. imho .
well with 3rd quarter over it'd be nice to see the 20+ mil on the next 10 q
qeustion? could we be expecting a 10q before anything?
hard to believe with all that buting at the ask no uptick
wow
i agree seems like an easy way to make an excuse for the pps going down
I remember somebody posted before about MMs being able to short 150% of the float, if that is true could we possibly own more than 100% of the float? How does that work?
maybe hoping somebody puts in a premarket market order?
This is a great stock PPS aside, if you think about it, real company, doing real things, for the good of people. I believe good will triumph evil on this one!
now one good conspiracy that burned me now three times already is the chatitsts and video chartists.
i've been in three stocks that have had great momentum going then the chartists show up out of nowhere and boom, drop like a rock. They got me once twice three times, coincidence? I think not.
all imho
The Finra reg SHO info is where those short numbers come from. I highly doubt any investor has a huge short position in this i mean if they had a short average of say 4 how much could they make.
wouldn't make sense to short a stock that has 4 tics to go down but 100's to go up(i hope)
remember MMs usually don't have shares to sell so when they fill a buy without selling from somebody's ask order it will come across as a short sale. so if there is not many sellers the MMs short the sale to make the market. in hopes somebody bidwhacks I guess to cover their sale. but if nobody sells or sells at the ask, it doesn't give them a chance to make their cover without running the price up, widening the spread and shaking it down.
i think your seeing the short volume the wrong way.let me see if i can find this post and post it without ihub mods deleting it like they did before....
here it is if they delete this one then i will believe your theory
Quote:
Market Maker Speaks Out: Ways of a Market Maker
I was an OTC MM for about 10 years ending in the late 80's. Since then I have been strictly an investor. Since I have not been that up to date in MM rules I will only make statements that I feel fairly confident are still accurate regarding these activities. By and large most MM don't have a clue nor do they care to learn, about the fundamentals of the stocks they trade.
They just try to make orderly markets. When dealing with BB stocks it is very easy for a MM to get trapped into being short in dealing in a fast moving market. Reason being; most of the MM's in this stock are what are called "wholesalers" this means they don't have retail brokers "working" the stocks.
So they have to rely on what's known as the "call" from larger retail houses. If a "Big" retail firm like an E-trade calls up a market maker to purchase say 5,000 shares of a stock, they expect to get an "execution" from that market maker. If he turns them down, or only gives a partial then the "Big" firm will go to another MM.
If this second MM "fills the order" then that "Big" firm has a moral obligation to continue to give future "business" in that stock to that MM who performed (his life blood). This will go on until he "fails" to perform and so on.
Contrary to popular opinion the "Big" firms Do NOT necessarily go to the "Low Offer" to fill a buy order (Or high bid for a sell). They "Go" to who they think will perform to fill the order and expect that MM to "match" the "low offer" in the case of a buy (bid in the case of a sell). Even though this MM might in fact be the "high bid" and not really want to sell any more.
As a wholesaler he must perform or he will get a reputation as a "non-performer" with the "Big" houses and will cease getting "calls" which means he will soon go out of business. I mentioned above that this activity is very significant to BB stocks. I say this because most of the trades in these BB stocks are "unsolicited" and are done through discount houses.
With the above groundwork laid, let me try to explain how market makers get short even if they like the Company; Lets say that a stock (shell) has been lying quietly at $.25 bid $.50 offered. A limit order comes into one of the MM's to Buy at $.50 for a thousand shares. Prior to this trade that MM may be "flat" (neither long or short any shares). He fills the order and is now short 1,000 shares. He may raise his bid hoping to find a seller to "flatten" out his position. But before he realizes it a wave of buyers have come in and cleared out all the $.50 offers. Now the stock is $.50 bid .75 offered. Here comes that "Big" firm he just sold the 1,000 shares to at .50 with another bid for 1000 at .75. He makes this print. Now he is short 2,000 at an average of .625. The market keeps moving and now its .75 bid 1.00 offered. Now he has to make a decision.
Just like investors, MM Hate to take a loss. So 9 times out of 10 he will now sell 2000 at 1.00 making him short 4000 but with an average .81. At this time he would love to see a seller at .75 so he can cover his short and make a few bucks.
But instead the market keeps moving up. Now it is 1.00 to 1.25 and here comes the buyer again at 1.25. He doesn't want to lose the call so now he needs to sell 4,000 at 1.25 to keep his break even point above the bid. Now he is short 8,000. Market moves up to 1.25 bid 1.50 offer here comes the buyer now he feels he must sell 8000 here because "stocks don't go up forever".
Now he is short 16,000. And so on and so on. If the stock keeps moving up, before he realizes it he could be short 50k or 100k shares (depending how big his bank is). _________________________
Finally the market closes for the day and on paper he may look all right in that his "break even" price may be around the closing price. But now he has to figure out how to entice sellers so he can cover this short. It is important to note that if this happened to one MM it has probably happened to most all of them.
Some ways MM's entice sellers; Run the stock up with a "tight spread" in a fast market, then "open" up the spread to slow down the buying interest. After it has "cooled off" for a little while lower the offer below the last trade right after a small piece trades on the offer then tighten the spread so that the sellers feel they can take a "quick profit" by "hitting the bid" on the tight spread.
Once the selling starts the MM's will walk it down quickly by only making small prints on the way down with the tight spread. Another way is by running the stock up in the morning, averaging up their short then use the above technique to walk it down in the afternoon.
Hopefully after doing this for several days, it will demoralize the buyers. The volume will dry up and the sellers will materialize thinking that the game is over.
Contrary to popular opinion, MM usually Do Not Cover in Fast moving markets either Up or Down if they are short. They Short More. They usually try to cover after the frenzy is out of the market. There are many other techniques they use but the above are the most popular.
This technique works about 9 times out of 10 particularly in a BB market. However that is because 9 out of 10 BB stocks are BS. Remember what I said above. Most MM's don't have a clue as to the value of a Company until they get trapped. If the Company has solid fundementals and a bright future. Then the stock will do very well. And the activity that caused the situation will prove to even help the future stock activity because it created an audience."
Market Maker's Operating Procedure
The savvy long-term investors never chase stocks up. For the most part that is momentum players and daytraders where most of it or what follows is dumb money. Instead the long-term investors use a couple of simple strategies in order to position themselves. One is to find a stock no one immediately sees has huge potential and accumulate. Long-term investors are not interested in trading against the public mind or the dumb money. That's where the majority of the money can be made but even more can be made if the base of a stock is held extremely strong by investors. However the second is not to doubt the research which is the underlying basis for going long and holding.
More and more investors are winning the game nowadays despite all bashers that float through the Internet that has become part of the game. Floor traders of market makers often watch CNBC, news wires and bulletin boards in order to follow the market during trading session. OTC BB market makers (MMs) don't use fundamental and technical analysis. However, what they do realize is a lot of dumb money does use this newest nitch charting or TA (Technical Analysis) to run a stock either up or down. To the MMs this is like taking candy from a baby. Simply they will paint the tape and use whatever tactic to affect the charting bands. Thus the public and dumb money they will have eating out of their hands. Effectively the MMs can show a strong stock growing weak by manipulating the close price in order to generate selling volume, delaying trading time to manipulate trading activities, or even stalling the ask without honoring orders to hold a stock price.
MMs follow a simple code of business when making a market in a stock especially an OTC BB. That is the level that stocks will seek that yields the most volume. Now this is very important because they make money on the volume buying at the bid and selling at the ask. In other words, by making the market they are buying low and selling high. Now smart money adheres to that rule, so do all the market makers. They could careless whether the stock is at $83 or at $0.23. All they care about is the action thus being able to sell stock at the offer (The high) and buy stock at the bid (The low). To increase their profitability, they make the spread as great as possible on as many shares as they can especially if the volume falls off.
When they have mostly all "buy" orders, that's not the price that's going to yield the most volume. They need both buy and sells to get the maximum action. Remember, MMs play the volume. If the volume decreases and there are mostly Buys that become a one way volume, Buy volume. So what they do is let the stock run up to a price where it runs out of steam. They fill all the buy orders there that they can and then comes the pullback one way or another naturally or induced. During the pull back they can buy tons of shares and flip them to those averaging down or trying to catch the bounce. At some price, the stock will be relatively stable and yield the most volume. Now that is the average price you will see
The average price is the point where a stock seeks a level where MMs can profit on the most volume. So during the day that is the price that MMs and momentum/day traders want to see the stock at. Why? Because they know the public and dumb money was chasing the price thing up. Most of the time, the MMs love a flurry of Market Orders which is a dead sign of an artificial run or momentum. Merely it is money in the bank for them. Most get hung in a momentum or day trade or by the tactics of Market makers, who are in the business to screw the public every chance they get and the NASD is not going to do anything about it. They are merely making the market liquid is there reasoning.
The market makers have created an added complication to the OTCBB's chaos of the already volatile intra-day price movements created by dumb money, momentum and day-traders. MMs can not relate to long-term holders in the OTC BB. That makes absolutely no sense what so ever. They feel a large percentage of trades in the OTC BB market consist of short-term or day-trades, MMs merely view the barrage of buy and sell orders as relatively neutral to the market. How they figure it is when the average dumb money buys shares in a company, the MMs feel or rather know with some certainty it is very likely that dumb money will want to sell back those shares relatively quick on the slightest drop.
Now somewhat comfortable with this logic the MMs merely short sells into the buying and attempts to take the stock down in an effort to "shake out" the weak. Since it is tough to know for sure whether a move is the beginning of a trend, or a routine shake out, this type of deception works quite well for the MMs. What the long-termers do to a stock is surprise the MMs because instead of falling the shorting has no effect and the price goes up. Now that puts the MM at selling low through shorting and thus having to buy high in order to cover.
Boy, when this happens, the MMs are not very happy campers. The investors and traders are supposed to be doing that no them. Now it becomes time to pull out every trick and tactic in the book in order to attempt to get a Bear Raid at every dollar mark or percent from where the stock started. Could be a penny in smaller priced securities? What MMs do is give you a chance to make a small amount of money for your momentum and day trading style by shorting it at these levels and trying to get a bear raid each time. Each failure is compounding the MMs short position so they let it go to the next level. Now come more deliberate tactics MMs use to coerce Bear Raid or panic selling.
Once the MM is caught short and the strength of the buy is overpowering the MM will want to cover his short position. So the MMs call up one of his friendly MMs and says some like "the weather is sure rough today." The MM along with the other "friendly MM initiates a down tick about the same time. Now this can also be done with a certain amount of shares such as an infamous 100 shares flag. This down tick gives the illusion of weakness designed to hopefully begin the bear raid of selling. The fickle, fearful, day trader, momentum and short term begin to sell out allowing the MM to cover his short position at lower prices. They will move it down quickly to get it to a price of least financial damage. Problem they have is long-term investors in the OTC BB. They start accumulating and buying comes flying in when they take it too far thus the MMs took it to the point of volume again and not only investors the other MMs step in the make money on the spread.
Alas the poor MM does not get to cover. Now comes various tactics like stalling, boxing, or even locking the Bid and Ask for a while. Of course, MMs aggressively deny any sort of collusion designed to fix quotes or spreads, but a recent SEC investigation tells another story.
MMs have a vast resource of tactics and it would take probably more than my lifetime to figure them all out.
So how do investors somehow manage to overcome the obvious deception in OTCBB arena? One answer is indirection trading style by going long which the MMs do not expect. In the war between investors and public companies on the OTC BB vs the MMs, if the MMs have all the advantages due to position or other factors, direct confrontation such as momentum or day trading hitting the stock is a definite death sentence.
However, an indirect approach tends to weaken the path of least resistance before slowly overcoming it. The most effective way is long-term investors slowly accumulating and holding thus drawing the MMs out of its defenses making them as naked as their short position. This is war so this slow accumulation and holding for the long term easily achieves the desired effect to force MMs to cover and knock off the tactics or bury themselves deeper.
The MMs when caught will especially use every trick and tactic in the book to get a Bear Raid thus playing on the individual fear of most people. The MMs feel they have information and position advantages over the investors as long as the holding of the stock is in weak hands or short term holders. Since they are OTC BB MMs who believe all OTCBB companies are not worth investing and management is ineffective regardless what is happening within the company. Furthermore, MMs know they are in the position to impose a great deal of influence in OTC BB stocks trading when it suits their needs.
This inherent power of position enables the MMs to move the markets at any time up or down. As a result, the only way to draw them out of their favorable position is going long. Now this does not mean just any company but to effectively nail the MMs, Longs must find the great company on the floor and accumulate long before the MM tactics and games begin.
People, investors, friends, we all can relate to much of these things this "article" present for us. The key is to accumulate, not be scared of the games being played, and nail those trying to prevent this stock from going up in their own play