If there is not manipulation on this stock, then someone should take the time to explain for everyone here why the following is occurring and has occurred in the past.
On more than one occasion, calls have been made to the Director of Equity Trading at Fidelity questioning why orders to buy were not being displayed or being filled on DKAM.
The response is the same.
"We do not make a market in DKAM. Your order has been routed to XXXX market maker. XXXX has informed us they do not have the inventory to fill your order. They are having to call around to find an available seller to fill your order. We want you to have every opportunity to receive the best price possible on this transaction."
First, I don't know about you. But I can guarantee all of you this. There certainly is not a single shareholder of DKAM that has been contacted by a market maker to see if they are willing to sell their shares right now because there is a large buyer looking to buy stock in DKAM. We have seen those holders of more than 50% of the shares in DKAM, that being management and the BOD, sell zero shares in the company since it was formed. Therefore, not a single LONG holder of DKAM has ever been contacted about selling their shares for a large buyer.
Second, there are billions of transactions occurring in the US Financial System on a daily basis. How many people, or should I say global populations, does it take to handle all these calls looking for sellers that are occurring on thousands of stocks on a daily basis? How does the entire US economy not grind to a halt?
Third, since when did Fidelity and the market makers they do business with nominate themselves as judge and jury to the order filling process? Any order to buy, no matter the size of the order, is processed electronically. Any order to buy where no liquidity is available then becomes a BID to buy that stock and the order is displayed accordingly.
In every instance where this has occurred, these orders were placed at the current Asking Price for DKAM, ORRRRRRRR slightly higher than the current Asking Price of DKAM to assure a full fill on the entire lot. In some cases they were AON, some not. Some GTC, some Day Only.
The point is folks that the market maker currently offering liquidity was in fact holding ZERO liquidity. Yet the market maker was not willing to stand down in any way to allow this, or any order like it to move in and become the best available BID on DKAM. Because that would force the price to go higher.
The second point is that every market maker in DKAM is obligated to display both a bid price and an ask price on the stock. If they have a client trying to cover on the bid, the market maker must display a minimum of 5000 shares on the ask, or offer, by regulation. These are shares they do not have. They do not own. If those shares get bought, or filled, the market maker has sold stock it does not have, and did not borrow, or make arrangements to borrow. That is a naked sale on the stock.
In an effort to not be holding naked shares, those same shares are then washed, or mirrored, back into the bid for their client who has a standing order to cover a short position and/or go long. The difference is then charged back to the large client with the order to cover, or even go long. Meanwhile, those phantom shares originally sold remain in the system and never show up as a naked short on any books or reports.
So, in this instance when a market maker is "having to call around" looking for a seller, they are looking for someone willing to step up and naked short the stock at a price higher than the current price because the market maker that took the order has a previous commitment to manipulate the price as low as possible for a short seller who was already manipulating the stock to begin with.
AI
