Purely a guess. For UCAD, I think the MMs raised the price trying to help attract buyers so IB 2000 (and maybe insider(s)) could sell their shares. According to the Form 4 filed in March 2004, IB 2000 converted all its preferred shares into common ones then sold off 40K. They reported still holding 960K common. Preferred stockholders usually do not convert unless they have the intention of selling. UCAD is so thinly traded though they need to generate some buying interest otherwise it would tank big time when trying to sell off large amounts. IB 2000 also paid otcpro 50K free-trading shares to promote UCAD as their stock pick. This is a really good indicator they're trying to sell.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.