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Wednesday, 07/29/2009 7:44:08 PM

Wednesday, July 29, 2009 7:44:08 PM

Post# of 103341
It should be common knowledge that the SEC permits Market Makers to lawfully use naked short shares to either make a liquid market in illiquid stocks , or an orderly market in liquid stocks on the OTCBB and OTC Systems . MM's are then allowed to deliver the NSS within a prescribed window ....I think it is still 13 days or thereabouts .

Prior to Expo's CC when the demand for EXPH was likely greater than the supply of EXPH shares the MM's were legally allowed to sell NSS to meet the demand for shares .

You betcha it is a ROTTEN rule under Regulation SHO because the principle of supply and demand should be purely on REAL shares , not counterfeit NSS that falesly increases supply to equalize and neutralize the effects of demand that advertently stalls a sustained rise in PPS .

The demand for REAL shares that exceeds the supply of REAL shares would have the PPS go up legitimately until sellers can obtain a desired price , and rises in the PPS would be more sustainable . That is what happens on the regulated and SEC supervised Big Boards .

When MM's can legally flood the market on the OTCBB / OTC with NSS to feed a run and then drive the PPS down in subsequent days in order to buy-back / deliver the NSS it is manipulation by collusion of MM's , particularly near the end of any month where the MM's need to balance their books of Fail To Delivers . There are reams of retail traders who buy and sell frequently throughout a trading day and that facilitates the MM manipulation with ease . It is a symbiotic relationship between manipulating MM's and traders / flippers , both sides needing the other .

It is wrong , wrong , wrong ....but on the egregiously unsupervised OTC and the minimally supervised OTCBB the Market Makers can do whatever they want with impunity .

Expo Holdings is a legitimate and viable company .

EXPH is a manipulated stock . I suppose it becomes apparent that holding a core position and using a non-core position for flipping along with everyone else could be more profitable than merely being an investor .

However , on the grounded belief that EXPH has become a fundamental investment there will be many players who have contributed to the PPS volatility who will be unluckily OUT of the stock at the wrong time and all of their 10 % to 20 % profiteering will pale to the much larger percentage gains reserved for those who safely held onto to their shares .

No-one needs to agree with my post , but it is as I see it .

Renee



To bite the worm of incite is to bite the HOOK of the antagonist . They win .

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