Wednesday, December 19, 2007 10:43:36 AM
1. Retail buys at the ask...MM's sell to them at current market prices...basically naked short
2. VC's agree sell to MM's at a discount...when MM's accumulate enough short position they then BUY the shares form the VC's
so it's like this..shares sold at .013...Lowtrade buys 1M at ask of .013, MM's sell nakedly 1M at ask of .013
MM's then buy back shares at .011...which are sold to them by VC's wanting to exit 100 - 1000% pps gain positions...MM's make 20% or so on their short...VC's get their large quantity sell...rinse and repeat
meanwhile if MM opens a naked short position on Monday of 4M and then sells them back on Wednesday no Reg Sho
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