"In my opinion MM's are getting rid of cheap shares while they still can before this stock goes through the roof."???
If the MM's know it's supposedly about to "go through the roof", then why would they be "getting rid of cheap shares" in this imaginary scenario?
1) MM's "make markets" by matching buy and sell orders between people on their networks, "OTC" for example. Their job is to "make" an orderly market. They compete against other MM's for "order flow" as that's how they make money and they can use all kinds of tricks on the electronic networks (flashing bids or asks for example) to get that flow to come to them. The MM makes their money "on the spread", the difference between the bid and the ask, which on a listed stock is fractions of a penny typically, but on a nano-cap penny stock like BHRT is often huge, like 5% or recently often as much as 8% to 12% on "the spread".
2) The MM provides liquidity by keeping some "inventory" of shares if needed, to fill imbalances between buy and sell orders sometimes if needed. But they also do things like short sell on rapid moves up to fill orders, then "cover" their own short positions by "pulling or walking it back", etc
3) The MM does not trade the stock as in "getting rid of cheap shares" - that makes no sense??
4) Even if an imaginary MM did "trade" a stock for their own positions for some reason, why would they be "getting rid of cheap shares" when they "know the stock is about to go big" (through the roof)? They would wait and sell those shares for the imagined "big" profit when the imagined "going big" through some roof happened, if they "knew" as is claimed? It would be the easiest money anyone could ever make?
Whatever Joe Q. Retail person knows about a stock (even with level II real time quotes or whatever), the MM sees and knows 100X times that info. They "see" the entire order book, they know if some hidden insider or "big boy" (one of these warrant holders with say 10 million shares they got at 1 cent for example), the MM knows if some large institutional type firm's trading desk is going to unload those shares through some electronic network and under what MM symbol and at what desired price. They can "see" large block fake orders "flashed" on the bid or ask, a technique used sometimes to try and move a stock sharply up or down by pro traders or a way another MM might use to try and grab or steer order flow their way.
Any retail investor, at best, is like a guy on the football field who sees the guy in front of him and with level II real time quotes, maybe sees over his head to the backfield and the guy to the left or right. The MM is like a guy up in the booth or even in the blimp above and sees both teams, the entire field, has a radio to hear both coaches making their play calls and talking to their other coaches like the defense coach or whatever and has all the game film history of both teams, instant replay and anything else that can be known. The MM is like the legalized "house" in Vegas. They never lose cause they always have an inside line, 1000X more capital than any other "player" and the system/odds are built by design in their favor.
There's no MM "getting rid of cheap shares" IMO?? What would that even mean and why, especially if "they", whoever "they" are, "knows" (as in "crystal ball" future seeing) that it's about to "go big" through the roof?
AI
