blued, in reply to G.Burns post.
Short squeeze.
CMKX is being short squeezed.
CMKX is being short squeezed so much that is why UCAD and GEMM are rising.
MM's are buying UCAD and GEMM on their own because of the CMKX short squeeze.
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* I don't buy any of the above, period.
Let's look at CMKX in the most diabolical way. Let's say all on this board are MM's and our goal is to short and naked short CMKX. Well, we are doing a good job and are short positions have profited incredibly since June. Any shares we have shorted at .0012, .0011, .0010, .0009, .0008, .0007, .0006, .0005, .0004 and .0003 have all shown nice profits.
Heck look at our short positions since late July. Shorts sells at .0005 and .0004 are earning us the some of the highest percentage gains if we cover today at .0001.
The point of the above is this: A short squeeze is when those in a short position are being squeezed into closing their short positions at a time when the market is demanding and buying shares at higher prices. How is what we have seen in the last week and a half, a short squeeze on CMKX??
It's not. In fact with the bid now at .0001, the MM's are still profiting nicely in their short position. If anything over the past 2 1/2 months (including currently), we have seen MM's short selling at .0003 and .0004 and MM's covering at .0001 and .0002.
If CMKX gets great news and demand for the stock increases, MM's can easily cover their positions, and get out of the way of the run. The very short time period of a pps increase would be merely a blip in the profits they have made in their months on end short position. No matter how large of a pps rise, they would simply cover for a small loss in relation to the enormous profits they have made over time. The day in and day out profits from their short positions for as far back as we can see far outweight any quick covering they would have to do.
Further, I don't see any evidence of MM manipulation in UCAD and GEMM. Volume has been steady and sure on both. Both have low floats and each show great value potential. The dollar value in buys seems to reflect money coming in from the demand of investors.
If MM's are buying UCAD and GEMM to hedge their short position on CMKX, then this is a win-win situation. They must see some positive news ahead for CMKX. Further, when such positive news hits, it will not only give life to CMKX's pps, but the runs in UCAD, GEMM and SGGM will be very strong. Those invested in CMKX and any of the partners will win on both ends
Maybe I'm just discussing semantics. And if that's the case, I'm sorry for making a hairy deal out of it. I'm just trying to clarify what is truly occurring so were all on the same page. You can see how much buzz 'partial dividend posts' and 'WMC rumors' create. However, I believe the low float, value potential and alliance with CMKX are the reasons why UCAD and GEMM are running hard. I simply don't agree that we are seeing any kind of 'short aqueeze' with CMKX right now. In fact, currently shorts in CMKX are still doing quite well. When CMKX news hits, MM's will simply cover as quick as they can and get out of the way of any CMKX run. If there is a naked short position, there would be a squeeze, but again the day in and day out profits they have made in shorting CMKX would dwarf any temporary loss from a squeeze. If some believe MM's are also long in UCAD and GEMM right now to hedge, then this is a good thing, as any good news will cause MM's (and the market) to buy even more shares of UCAD and GEMM at that time at increasing pps levels. : )
A good Tuesday to all.
Bo
