Hello again Ben,
You state: 'once they suspended trading for either fraud or suspicious activity, that immediately kills all momentum and or faith in the company.'
I would NOT think that a ticker would be suspended for the illegal activities of MM's for Price Manipulation. I would guess the individual trader in the MM firm would be fined and then suspended if it continues. If it is seen to be a 'pattern' of the MM Firm itself then fining the firm and suspending their privileges of 'making a market'. I would think that business for all else would stay the same. If I had to make a guess, trading might actually increase seeing the the investors money has legitimate change of not being 'pissed down the tubes'. Just my opinion though. Plus, what momentum are we talking about? This has not had a positive momentum in quite some time. Maybe it would be good to disrupt this negative momentum for a while.
You state: 'If there were anything truly suspicious then I would have found something in filings...'
I do not know what you would expect to find in the filings since those are from the company and I am not accusing them of any wrong doing. This is all the game (or theft) of the MM's.
You state: 'but just seems to me like MMs know how to psychologically get people to sell or buy by using charts and pricing points.'
It sure is easy when you can show only 10K on an ASK and sell hundreds of thousands to millions, while convincing that 'it's thin as hell on L2 all the way up to...'. This happens around resistance points, trend lines and SMA's. It is all done to LIE about what is going on in the market.
You state: ' company is diluting small amounts of shares. MMs cannot buy shares directly from noteholders or company...'
I would be interested in knowing how you can tell that it is the company selling shares way down here and it is not the MM's 'washing'. Please help me see how you know that is what is happening.
Also, I was not aware of the restrictions of the MM's not being able to fill the 'noteholders' or 'company's' sell order. Can you let me in on where I might do some studying up on this. I was under the impression that they had to make a market for ALL transactions. Thanks.
Lastly, It seems there are 82 MM's listed for OTC. I would think that we are in really bad shape if the SEC tracks down and disciplines a handful that are do these illegal trades that are causing Price Manipulation. Out of 82 I would think they would offer it up to another MM if one got suspended.
SM
