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You have L2, you know more than a lot of people. ;)
the large majority of patients taking NICOSAN™ no longer experience sickle cell “crises” while on the medication,
About NICOSAN™
NICOSAN™ is an anti-sickling “Natural Herbal Drug” developed by Nigerian Scientists at NIPRD and licensed by Xechem. In clinical studies conducted under NIPRD’s auspices, the drug has shown to substantially reduce the degree of sickling of the affected red blood cells of those afflicted with the disease. While not a cure for SCD, the clinical trials have confirmed that the large majority of patients taking NICOSAN™ no longer experience sickle cell “crises” while on the medication, and even among those whose crises are not eliminated, the number and severity of the crises are substantially reduced.
The thought has crossed my mind.
You want this stock to jump to .25, just have Steve post pictures of plant producing. GARUNTEED
Just boared.
Talk is cheap (especially your), you don't have to pump this company, if all news is true, this will run big, flipper and pumpers will pump no matter what.
Picture are worth millions, especially here.
you could not afford my shares pumper.
Burg better get some pictures with this plant producing, or news on 8 mil loan, or this is going no where.
Stephen Burg, 707-425-8855
If plant is producing with even minor output, SHOW US
yawnnnn zzzzzzzzzzzzzzzzzz
That is very true!!
From another baord, good info specially question #19:
1) Has production started yet, in anticipation of NAFDAC approval?
Steve stated that production has not yet started. As soon as they
get approval from NAFDAC they will start production immediately! He believes it will take less than one month to get the product out.
2) How much Nicosan can the existing plant produce?
Steve stated that the existing plant can produce enough product for
100,000 patients per month.
I asked him how they will control this so that it doesn't cause
problems like too many patients and not enough drugs? He stated that they will limit 100,000 customers to their product and continue to produce that amount to keep the supply for those 100,000 customers. This will allow them to guarantee nobody starts taking the drug and then is denied Nicosan the next month due to a lack of supply.
3) When was Nicosan submitted to NAFDAC for approval?
He stated that they submitted Nicosan to NAFDAC about 1 month ago. Not sure when they will get the approval. (I read on NAFDAC's site that they are trying to get the approval process out in two months on drugs submitted, so it may be near....this is my opinion....not Steve's!)
4) Who will be paying for Nicosan?
Steve said that about 1/3 of Nigerians can afford Nicosan, but the
rest will be relied on healthcare plans. Steve mentioned that the
goverment buy Nicosan directly from Xechem Nigeria for their
government employees.
5) Is the website xechemnigeria.org operated by Xechem Nigeria?
He assured me that the website is real! It is run by their
subsidiary Xechem Nigeria. They are in the process of converting it
from .org to .com....so stay tuned
6) Is Xechem International and Xechem Nigeria two seperate companies?
He said yes, but Xechem Nigeria is a 100% wholly owned subsidiary of Xechem International.
7) If Nicosan is an Herbal supplement, why is FDA approval necessary?
He agreed with me and admitted that it could have been marketed as a herbal supplement, but said my getting the approval from the FDA would allow Xechem to increase their profits substantially. He
stated that this was discussed very early on and they made the
decision to get the approval. He said this will be paid for by
insurance companies and it will mean more $$$$ for Xechem!
8) Is Nicosan by prescription only?
Yes, he said it was strictly by prescription.
9) How much will Nicosan cost?
He would not say exactly. He admits that they have an idea, but they will not be sure until they get the factory up and running and see what the actual costs are
10) When will the next shareholders meeting be held?
Steve said the shareholder meeting will be held in August of 2006.
Her said 60 day notice will be given, but because he was not in his
office....he did not have the eaxact date. He promised to get it to
me.
11) Who is the tranfer agent for XKEM? Can we have a contact number?
Steve said the transfer agent is Continental Stock Transfer. He
said they are one of the bigger agencts out there. Again, not in
the office, so no number at this time.
12) Does Xechem meet all the requirements from Nafdac?
Steve said as far as he knows, thet meet all of the rewquirements.
He admitted that they had a few initial questions, which were
answered promptly by the company and they have not heard back. He said "no news is good news," which makes sense.
13) Has Nafdac already visited the factory in SHESTCO?
Steve said NAFDAC has visted the factory and they were very
impressed.
14) Is the packaging and formulation of the Nicosan product ready for immediate production after approval?
Steve said it is ready. They have some inventory of packaging set
to go. He stated that initially the product will be available in
bottles.
15) Nafdac website says that 2 month time frame for the approval since the submission date. In that case, is that correct to understand that Xechem should expect to wait 2 months after the submission date at the end of March ? If true, are there any pending issues, which could delay the approval ?
Steve was not aware of the timeframe NAFDAC has, but stated that he is surprised that they would be putting a timeframe on a drug, which will affect millions. So, he said he wasn't aware of the date and feels they don't want to rush the process.
16) Are you aware of any issues or roadblocks that would prevent the approval from happening?
Steve said he was not aware of any, but would not say there might
not be more questions. They have answered all the questions NAFDAC has asked and feels confident in the replies.
17) Is the President of Nigeria proceeding with the launch as previously announced?
Steve wasn't sure how to answer this as he was aware of the
businessdayonline article. He believes that there are many
important things for the President to be dealing with rather than
worrying about a small drug factory in Nigeria, but he said this
would be quite the legacy for him to have this launched under his
tenure. I felt he did not want to answer for the President of
Nigeria and I told him that I totally respect him for that reply.
18) On what day was Xechems final registration application made?
Sorry, forgot to ask the exact date BUT I know it was in
March/2006. I will ask him next time
19) What countries does Xechem plan on targeting after Nigeria, have they begun the process yet?
Steve said sub-sahairan Africa will be next. There are 4 million
sufferers in Nigeria and another 4 million in sub-sahairan Africa.
2/3 of the worlds population suffering from this disease are from
these two areas. He explained that they will be focusing on this to
start!
20) Can Xechem send us investor packages if we send him our mailing addresses?
Steve said to contact Xechem International at 732-247-3300 and they will send out some information. He admitted that their package wasn't the best package, but it does have some information in it.
21) We know that the future loan 8.5M is not dilutive, that's a good thing. Do we expect to have the convertible shares to 1.9B (maximum allowed by the company), at which price for the conversion rate and what is the expiration date (because of other small loans)?
Steve was not quite sure what was being asked, so asked that I
clarify the question and said I could call him back tomorrow. So, I
will do that. I think alex asked this question? Alex, e-mail me
and we can clarify it.
22) Can you discuss why Pandey is in Nigeria?
Steve explained to me that he is doing his duty as the head of
Xechem. He said that this is a major part of their business at this
point and he needs to be there. He stated that he is there to talk
to NAFDAC, encorage them and answer any questions. He expressed his belief that if he were not there overseeing the operations....it would be irresponsible on his part.
23) How long is Dr. Pandey in Nigeria?
Steve said that Dr. Pandey is scheduled to come bacl to the U.S. on
May 24th, 2006, but it will take him two days. He stated that he
will be back in the U.S. officially on May 26th.
24) How many doses are required per day?
Steve said ONE dose is required per day for each patient.
25) How much will it cost per month, per patient?
Sorry, he still would not give an answer.
26) Specific nations Xechem will target next?
Steve said that Nigeria is their main focus for now. He stated that
sub-saharan Africa would be next. There are millions and millions
of people in these two areas suffering from this disease.
27) O/S total....to date (05/18/2006)?
Steve said as of last week....about 1 billion....BUT, he said the
filing will have an exact total. It was filed today, so should be
available Monday.
28) Does Xechem need to submit a request to NAFDAC for advertisement?
Steve said that only one approval is required by NAFDAC. Once that is granted....production will start.
29) Asked about the loan with UPS Capital and the possibility of an update.
Steve explained that nothing has been finalized, but he said they
are "very close." He stated to me that they do anticipate
with "high likelihood" that they will close on that. He also
mentioned that there are some options in discussion that might
eliminate dilution. We discussed the dilution and he admitted that
this was not their plan, but it was either take this route, or shut
the doors. They hope to have a resolution in place in the near
future.
30) Asked him if they thought President Obasanjo's failed bid for a 3rd term would hurt Xechem?
He laughed and explained that he could not imagine a President
coming in and telling the millions who suffer from this disease that
he was not going to offer them a drug that can help them. So, in
short....he said "no."
31) I asked about the study that Rutgers University was doing for Xechem on the amount of plant material in Nigeria, which will be used to produce the drug?
Steve was very honest and said he wasn't sure what I was talking
about. I explained that it was in one of the filings, and it
indicated the study would be complete in February of 2006. He still wasn't aware of this?
32) Is there a business plan in place if/when the drug is approved?
Steve expressed to me that they have discussed this as a group and
there are many plans that have been discussed. He stated that their
priority now is to get the approval and to generate some revenue.
33) If the financing with UPS Capital is obtained, how long will it take to build-out the remaining buildings?
Steve said that the major building is complete, which is where the
drug will be producted after launch. He said there will be some out-
parcels from the main factory. One building will house the raw
material, another building will be used for the next step in the
process, which will also house some dryers. Without explaining
everything he said....Steve said we were talking months, not years.
Marketing of NICOSAN(TM)
Sales of our NICOSAN(TM) product are anticipated to begin in Nigeria during the second quarter 2006. Although we do not anticipate early revenues to be significant, these revenues will help support the costs of operations in Nigeria.
Nigeria: Clinton, World Bank President, 15 Heads of State for Nigeria Next Week:
http://allafrica.com/stories/200607101098.html
I hear ya buddy. best penny out there, it is a money maker.
odd lot yes, signal probably
Same up as down volume but price GOING UP.
http://www.profitspi.com/stock-quote/xkem.aspx
Did you flip (you sound like one) or are you a long?
This company has a product and a plan:
Time & Sales
Price Size Exch Time
0.0442 100000 OBB 15:58:59 *****
0.0445 250000 OBB 15:58:59 *****
0.0444 9800 OBB 15:58:57
0.0445 30000 OBB 15:58:50
0.0442 30000 OBB 15:58:50
0.0442 400000 OBB 15:58:38 *****
0.0445 25000 OBB 15:58:36
0.0442 49000 OBB 15:58:31
0.0442 82222 OBB 15:58:25
0.0442 140000 OBB 15:58:24 *****
0.0441 28000 OBB 15:58:12
0.0443 5000 OBB 15:58:08
0.0436 600000 OBB 15:57:58 *****
0.0442 50000 OBB 15:57:40
0.0442 250000 OBB 15:57:37 *****
0.0442 700000 OBB 15:57:29 *****
0.0442 60718 OBB 15:57:20
0.0441 200000 OBB 15:57:11 *****
0.0442 50000 OBB 15:57:08
0.0441 250000 OBB 15:57:02 *****
0.0442 500000 OBB 15:57:02 *****
0.0441 250000 OBB 15:57:01 *****
0.0441 30000 OBB 15:56:44
0.044 30000 OBB 15:56:44
0.044 5000 OBB 15:56:42
0.044 12500 OBB 15:56:41
0.044 100000 OBB 15:56:40 *****
0.044 40000 OBB 15:56:33
0.044 10000 OBB 15:56:20
0.044 65500 OBB 15:56:18
And you what is neat, this stuff works:
Orphan Drug Niprisan (Nicosan/Hemoxin) for Sickle Cell Disease in EU
On Oct. 4, the European Medicine Evaluation Agency (EMEA) approved orphan drug status for the phytomedicine niprisan (Nicosan/Hemoxin, made by Xechem International, Inc.) for the treatment of sickle cell disease (SCD).
Niprisan is an ethanol/water extract of Piper guineenses seeds, Pterocapus osum stem, Eugenia caryophyllum fruit, and Sorghum bicolor leaves.
The approval was based in part on data from a phase 2b, placebo-controlled, double-blind crossover study in 82 Nigerian patients. The data showed that treatment with niprisan significantly reduced the frequency of SCD crises associated with severe pain during a six-month period (P < .01). Moreover, 73% of patients achieved complete remission.
Niprisan did not appear to cause acute hepatic toxicity, as assessed by liver enzyme activity; evaluation of serum creatinine and blood urea nitrogen levels suggested that renal function also remained normal. No serious adverse events were reported.
I love this company, everything is planned well:
http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BBC2913D2-A78A-4D2C-8921-ABB048D861CB%7D&...
The researchers believe that with the advent of NICOSAN, Sickle Cell Disease may soon be removed from the class of ailments having no specific drugs to cure them anywhere. As Sickle Cell Anaemia takes its toll on the human race, the global public awaits the efficacy of this drug, its standard maintenance, the height of its safety profile, its broad spectrum capacity and its affordability to patients of the disease who, perhaps, may never have hoped for any specific cure in the near future. That is if it proves itself to be the cherished specific cure for the disease.
Don't you just love the MM's with their 5000 share($165) trades?
There should be a law.
Best post I have read:
By: lyteinvestor
11 Jul 2006, 04:04 PM EDT
Msg. 76376 of 76502
Jump to msg. #
i urge you all to stop acting like scared idiots. USXP, GZFX, all the great micro stocks had the exact same patter.
In GZFX's case, it went from .004 to .015.. drifted back to .005, took about 3 weeks of consolidation then surged all the way to .025 (500%).
UXSP similar trading.
I wired more money today, and i will jump in for another buy tommorrow morning. I am happy with the volume, price and will not be scared off by the tactics of a few manipulators out there. Just like i didnt get shaken out of USXP or GZFX, i will not be shaken out of XKEM.
I must say that the children are getting a good lesson in bashing and pumping.
Most of the best DDing is right on this board in front of you.
THIS IS ONE OF THE MOST LEGIT PENNY STOCK COMPANIES AROUND.
All I will say is in time,
BOOOOOOOOOOOOOOOOOM
At what level do you want your profit to be?
.11, .22, .55, it is up to you,
DO NOT GO BY OPINIONS ON THESE BOARDS.
PROVE THE SCAM WITH PROOF OR SHUT UP YOU VERBAL WASTE OF TIME IDIOTS.
Never admitted of being a basher, I do get angry when reading most BS posts though.
Could you explain more please.
SOME SCAM: Bashers are silly.
• Nigerian President Olusegun Obasanjo Launches Xechem's Sickle Cell Drug, NICOSAN(TM), in Nigeria
Business Wire (Tue 6:30am)
• Xechem Receives Approval For Sale Of NICOSAN(TM) From Nigerian Regulatory Authorities -- NAFDAC
Business Wire (Wed, Jul 5)
• XECHEM INTERNATIONAL INC Files SEC form 8-K, Unregistered Sale of Equity Securities, Other Events
EDGAR Online (Tue, Jun 20)
• Xechem Receives Orphan Drug Designation From The FDA For Its Anti-Sickling Drug 5-HMF
Business Wire (Tue, Jun 6)
• XECHEM INTERNATIONAL INC Files SEC form 8-K, Entry into a Material Definitive Agreement
EDGAR Online (Thu, Jun 1)
• Xechem's Subsidiary -- Xechem Pharmaceuticals Nigeria -- Receives N150 Million Naira ($1.2 Million) Loan from NEXIM Bank
Business Wire (Thu, Jun 1)
• XECHEM INTERNATIONAL INC Financials
EDGAR Online Financials (Wed, May 31)
• XECHEM INTERNATIONAL INC Files SEC form 10QSB, Quarterly Report
EDGAR Online (Mon, May 22)
• XECHEM INTERNATIONAL INC Files SEC form 10KSB, Annual Report
EDGAR Online (Mon, Apr 17)
• XECHEM INTERNATIONAL INC Files SEC form 8-K, Other Events
EDGAR Online (Wed, Feb 8)
Wed, Feb 8, 2006
• XECHEM INTERNATIONAL INC Files SEC form 8-K, Other Events
EDGAR Online (Wed, Feb 8)
Fri, Jan 6, 2006
• XECHEM INTERNATIONAL INC Files SEC form 8-K, Entry into Material Agreement
EDGAR Online (Fri, Jan 6)
Mon, Dec 19, 2005
• XECHEM INTERNATIONAL INC Files SEC form 8-K, Entry into Material Agreement
EDGAR Online (Mon, Dec 19)
Mon, Nov 21, 2005
• XECHEM INTERNATIONAL INC Files SEC form 10QSB, Quarterly Report
EDGAR Online (Mon, Nov 21)
Fri, Nov 18, 2005
• XECHEM INTERNATIONAL INC Files SEC form 10KSB/A, Annual Report
EDGAR Online (Fri, Nov 18)
Thu, Oct 6, 2005
• XECHEM INTERNATIONAL INC Files SEC form 8-K/A, Entry into Material Agreement, Sale of Equity
EDGAR Online (Thu, Oct 6)
Wed, Aug 31, 2005
• XECHEM INTERNATIONAL INC Files SEC form 8-K, Sale of Equity, Other Events
EDGAR Online (Wed, Aug 31)
Mon, Aug 22, 2005
• XECHEM INTERNATIONAL INC Files SEC form 10QSB, Quarterly Report
EDGAR Online (Mon, Aug 22)
Thu, Jun 23, 2005
• XECHEM INTERNATIONAL INC Files SEC form 8-K, Entry into Material Agreement, Termination of Material Agreement
EDGAR Online (Thu, Jun 23)
Watch what happens when XKEM get the eight million approval and the plant really starts producing.
Xechem’s Subsidiary -- Xechem Pharmaceuticals Nigeria --
Receives N150 Million Naira ($1.2 Million) Loan from NEXIM Bank
NEW BRUNSWICK, NJ – June 1, 2006 – Xechem International, Inc. (OTC BB: XKEM) Xechem International announced today that its Nigerian subsidiary, Xechem Pharmaceuticals Nigeria Ltd. (Xechem Nigeria), has successfully closed on a N150 Million Naira ($1.2 million) loan from the Nigerian Export-Import (NEXIM) Bank. The loan has a three year term, with a moratorium on repayment of principal during the first year. Xechem International is neither a borrower nor a guarantor under the loan facility in this transaction.
Proceeds Earmarked For Expanding Production Facility For NICOSAN™ In Abuja
The money received by Xechem Nigeria is to be used primarily to facilitate the expansion of its facility for the commercial scale production of NICOSAN™, its promising Sickle Cell drug. At the signing ceremony held at NEXIM’s headquarters in Abuja, Nigeria, Dr. Ramesh Pandey, Chairman and CEO of both Xechem International and Xechem Nigeria, said, “The loan will enable the company to immediately begin construction of buildings needed to expand its commercial scale production facility in Abuja. It is a proud moment not only for Xechem Nigeria, but for the whole of Nigeria as well. By taking this giant step with us, NEXIM Bank has confirmed to the world the great confidence it has in this project. This will not only accelerate Xechem’s efforts in bringing NICOSAN™ to the market, but will also help build international esteem for Nigeria and the changing investment climate in that country. We are extremely gratified that we can now embark on our much needed expansion, and are particularly excited that we can do so with locally generated funds from a respected and reputable local bank.”
The Chairman of NEXIM Bank, who is also Deputy Governor of Central Bank of Nigeria, Mr. Tunde Lemo, complimented Xechem for coming to Nigeria and setting up the facility to produce NICOSAN™ to treat an African disease for which there is no drug in the market.
Speaking of the dignitaries in attendance at the signing ceremony, Dr. Pandey added: “I am very pleased and happy to see Professor A.B.C. Nwosu, the former Honorable Health Minister, at this ceremony. It was during his tenure that Xechem obtained the exclusive worldwide license for NICOSAN™ from the National Institute for Pharmaceutical Research and Development (NIPRD). I am also honored to see among those in attendance the Hon. Prof. Turner Isoun, Nigeria’s Minister of Science and Technology. From the beginning, he has been extremely supportive of our efforts and we are forever grateful for the interest he has taken in what we are doing in Nigeria.”
Among the other dignitaries present at the May 22nd signing ceremony at NEXIM Bank building in Abuja were: MD & CEO of NEXIM Bank, Alhaji Baba Yusuf Ahmed; The Minister of State for Finance (represented); The Director General of Sheda Science & Technology, Dr. Ayo Coker; Mr. Alhaji Tijani, Director General & CEO of Abuja Development Corporation, representing The Chairman of the Federal Capitol of Nigeria.
Drug To Be Launched In Nigeria Following NAFDAC Approval
As previously reported by Xechem International, Xechem Nigeria has submitted its Drug Master File (DMF) dossier with Nigeria’s drug regulatory agency, the National Agency for Food and Drug Administration and Control (NAFDAC), seeking full registration for NICOSAN™. It is currently awaiting final word from that agency on its submission. Subject to the necessary approvals, Xechem has indicated that it would like to launch the drug in Nigeria by early July 2006, and shortly thereafter to embark on the clinical trials in the US hospitals for FDA approval through the Investigational New Drug (IND) Application for sale of the drug in the United States.
About Xechem
Xechem International, Inc. is a development stage biopharmaceutical company focusing on anticancer, antiviral (including AIDS), antifungal, Sickle Cell Disease (SCD), antimalarial and antibacterial products from natural sources, including microbial and marine organisms. Xechem’s mission is to bring relief to the millions of people who suffer from these diseases. Its focus is on the development of phyto-pharmaceuticals and other proprietary technologies, including those used in the treatment of orphan diseases. Its primary attention and resources are currently being directed toward the development and commercial launch of its Sickle Cell drug, NICOSAN™/HEMOXIN™, which has shown efficacy in the treatment of SCD.
For further information contact:
Stephen Burg, Director
Xechem International, Inc.
(707) 425-8855
Banks don't lend scams 1.2 million dollars bro.
Great post:
Posted by: rookiecrd1
In reply to: Degreed who wrote msg# 24042 Date:7/12/2006 10:44:12 AM
Post #of 24072
This is not a Pink - They have to report any dilution.
Grow up and quit using scare tactics
Thats ok, I have been adding from .01 to .05 thru and will continue,great company.
W T F, You better get Scottrade to explain.
I wish this would stop:
Education - FAQ's - General
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 neccessarily 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." _____________________________________
Credit for this post goes to Cardshark_1999
http://www.internetplays.com/education/marketmaker.php
Best post I have read:
By: lyteinvestor
11 Jul 2006, 04:04 PM EDT
Msg. 76376 of 76502
Jump to msg. #
i urge you all to stop acting like scared idiots. USXP, GZFX, all the great micro stocks had the exact same patter.
In GZFX's case, it went from .004 to .015.. drifted back to .005, took about 3 weeks of consolidation then surged all the way to .025 (500%).
UXSP similar trading.
I wired more money today, and i will jump in for another buy tommorrow morning. I am happy with the volume, price and will not be scared off by the tactics of a few manipulators out there. Just like i didnt get shaken out of USXP or GZFX, i will not be shaken out of XKEM.
give it 2-4 weeks. until then, shut it. go see the new pirates movie. great movie IMO.
Firehawk7_2000
I can't get back to my orig post to edit, I will post following your directions.
People sold today for profits, and very good ones, SO WHAT, this is still a real company that has been in the works for years, longs will be rewarded and people will still flip for profits, LEARN THE GAME LADIES AND GENTLEMEN!!
XKEM will make your money back. IN BIG