Elite Pharmaceuticals Inc (ELTP)

[imanjen13]

The problem with being on the OTCB is that it is difficult to buy or sell any decent amount of shares without causing a dramatic shift in the PPS in either direction. Yesterday and todays activity was unusual when a MM INTL, who is usually not vert active, offered to sell 822k shares yesterday at .12. Since these offers to sell are often fake and are withdrawn before it was "hit", I was interested to see if he posted again today. Sure enough someone took out the offer for 683,000 shares which represents a nice hunk of change. Once that big trade was completed the offers to sell have dramatically dropped.

Years ago, this market was dominated by a firm known as Herzog, Heine and Geduld, who made a market and agreed to cover for any order size, in effect being a stock bookie. They were highly successful and were bought out by Merrill Lynch in 2000. Now the market is dominated by a group of MMs who often manipulate the stock instead of serving to assure an orderly market.

The low bids and offers make this stock almost impossible to trade although some here claim they do.

People who want to ring the register or accumulate large amounts will often have to wait for an event such as an earnings surprise or a report of a successful filing or contract. The average 1 million a day volume is peanuts and does not represent the total holdings of many individuals here.