MY MDCN Short Story
It would appear to me that we are about to repeat history in the coming months? 10 cents to .001 anyone? I offer a few posts I found to share with you below.
Ken is in complete control of the company with his voting rights and VFIN, BKRT, CDEL, NITE etc are in complete control of the PPS. The shareholders of MDCN are only in control of our decisions.
Homebrew Quote:
“It makes no common sense to short at .0001, unless you are damn sure a reverse split is coming. But shorting penny stocks is SOOOO risky, with little return potential, that it makes no sense most of the time, even when not at .0001”
Great prediction Homebrew!
Unless your one of the many MM’s we are aware of that control the price of MDCN stock?
Please note the date of this post.
nodummy
Saturday, 10/15/11 12:59:18 PM
Re: qwertytrader post# 16562
Post # of 89139
The key is understanding that pink sheet stocks are not investments - 99% of them will lose value over the long run and never accomplish most of their forward looking pumping statements they put in press releases or on their websites. Never believe the hype - always be skeptical of everything you hear.
The people mostly making money with pink sheet stocks are promoters, front loading pumpers with big followings they can dump on, crooks, some of the flippers, and sometimes the very lucky.
Pumpers only tell you to buy stocks that they already own. Pumpers only tell you to hold stocks because they want to make sure you hold longer than them.
They make money by pumping the stock and getting other people to buy then dumping their shares on the followers.
If you really want to take the risk of trying to make money trading pink sheet companies then you have to understand how the game works and never ever hold long term - take profits when you can. Pump and Dumps dominate the IHUB forums.
Trading pink sheet stocks is a sick game full of lies and deceit where people take advantage of the inexperienced and naive stealing away their life savings for their own personal gains.
Here's a spot on explanation courtesy of poster 1ManBand that explains why the OTC Short Report is bogus (it only shows the first leg of the trade) and why short squeezes never happen.
Quote:
--------------------------------------------------------------------------------
Market makers keep little to no inventory of sub-penny stocks. Especially ones with toxic death spiral convertibles, who are going to be worthless eventually. It is a matter of when, not if. Which means when they get an order, they short the stock to the client and then covers almost instantly. Usually that means buying the stock from the toxic death spiral funders, who have a standing order in for millions to sell - they will sell as much stock to the MM's as they need. If an order comes in for 10 million shares at $0.0002, the MM sells it short to the customer (because they have no inventory) then immediately buys the 10 million shares from the toxic death spiral funder at $0.00019 (or less) and is flat. But the short volume report only records the short leg - they don't reconcile the long trade, which is why short interest is ZERO. These MM's are happy to make the spread with zero risk. Keeping any inventory, or holding a short position overnight, is too risky.
Ironically, those daily short volume numbers are highest with toxic death spiral stocks under massive dilution. NBRI is the perfect example. The MM's know they don't have to keep a single share of inventory because the toxic convertible holders will sell them as much as they need to cover any order. Very little respect or morals exist in stinky pinky land.
AI
