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Re: Meztic post# 14370

Thursday, 05/12/2016 11:28:10 AM

Thursday, May 12, 2016 11:28:10 AM

Post# of 84393
One of the prime stock dilutors in the market today is back, VFIN. This is a little strange for him as he usually dilutes stocks that still have some downside. With NECA selling at .0001 which you would think would be its bottom, how much lower can he bring it ? Below is a little insight into what he does.Florida

If you have been trading penny stocks for some time, you’ve probably heard the term “dilution” thrown around quite a bit. Dilution hinders a stock from running and can push the price down as well. Dilution is most noticeable when a market maker shows a certain amount of shares at a specific price, but sells much more than the amount shown (soaking up size). For example, VFIN may be showing 10,000 shares for sale but actually selling hundreds of thousands. When I see a market maker who is infamous for dilution on a level 2 screen, it is a red flag. Frequent dilutors include but are not limited to VFIN, VNDM, PERT, and VERT. I view dilution on a level 2 screen the same way I view a resistance level on a chart; price levels that will be hard to break.