Elite Pharmaceuticals Inc (ELTP)

[WeeZuhl]

Not saying I agree with "bid support"

As I have said the MMs are supporting the PPS of ELTP like I have never seen them do before (they make more money at a lower PPS)

But IYO what would be their motivation to do this? As you say, they can buy and sell more shares and thus make more money at a lower price. So why support the bid?

First, this assumes a level of collusion among the MM's that many on this MB have long suggested. So I assume you agree the MM's are colluding with one another?

I would guess that the run up to .97 caused a "reset" of the break-even point among the MM's. Back when it hovered around .07 and then .12, they had a different break-even point. They did all their selling, naked shorting, covering, and reloading during the run-up and retreat, and now their current buy-in level is low .20's. Letting it go too far below the buy-in level would not be good for them. For a short period it would allow them to reload the boat for next move upward, but after a while they would have a full boat and would not want to price to fall below the average PPS of their current boatload of shares.

Not saying I agree with the concept of "bid support" by MM's, but I am trying to understand why they would do such a thing.