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Re: dealerschool2006 post# 104515

Wednesday, 10/18/2006 7:22:19 PM

Wednesday, October 18, 2006 7:22:19 PM

Post# of 169275
No, that's the wrong answer. For some reason, you think that the market makers will adjust the price because of the financials. That's wrong. They adjust the price to make a market. Right now, at $1.80, they're having a tough time.

Put it to you even simpler, if a company is trading at 100x earnings and is completely overvalued, market makers don't sit there and say lets adjust the price down, this is ridiculous. They simply make a market for the current demand.

If the price is $1.80 when they add 6x dilution, they'll divide the price by 6 and open it up. Pretty simple.


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