OTC Marketmakers and price
I noticed the mood worsens with some when the price drops on these swings, and are upset with Baltia management. They've obviously taken a very long time to launch, but one should also keep in mind the marketmakers' business way of thinking and their hand in the mix.
1. They set bid and ask price of stock.
2. They're on the opposite side of the retail traders' business transaction.
If that's true, and we're primarily buying, then they're selling. But if you're selling something you want the price to go down, not up.
They actively support a stock dropping. At times they'll contribute to the drop with bid/ask #s. The lower it goes, the more we retail traders get frustrated and are tempted to sell - cheaply into their hands. They don't want to accumulate stock for an up move like us. They just want to take in inventory as cheaply as possible and sell it at a higher Ask. So they have VESTED INTEREST to see the price drop.
This plays out in many ways. One can often see how the price pops up first thing in the morning. That's because some retail traders before the open or right after placed buy orders anxious to get in, and the market makers will temporarily raise the Ask to offload their cheap inventory at an inflated price. Then they'll drop the price down again because if selling comes in, they want to buy it cheap.
Or you wonder why price doesn't rise more with a press release. In many cases it's just a welcome event to raise price, dump their inventory on the public at an inflatd price, and then, surprise, the stock heads back down.
There's many angles to this, but the long and short of it is, while Baltia needs to do its job and launch to get the share price solidly uptrending, marketmakers are in there frequently putting down pressure on the stock price. It's part of their business model to make $.
Since they're not visible in the game, one can easily get upset at Baltia for the price inching down day by day. Know the marketmakers are busy at work making $.
If you believe in the company, then don't get distracted. Ride it out. Maybe add positions like some have said, or just stay put.
If one understands the marketmakers' slate of hand, it helps to get less frustrated. Especially with OTC stocks.
