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Re: etna2000 post# 8497

Tuesday, 04/20/2010 12:50:15 PM

Tuesday, April 20, 2010 12:50:15 PM

Post# of 19695
Ok.........I am not an expert. So the market makers see the company is selling shares to pay for lawsuits and what ever. So the company sells shares.the company has to sell at the Bid which has been .0003 for a while.Who would buy this many shares? well the market makers are buying it in a way............but they are taking these shares as a short position ( a bet that the price will fall and they cover at lower levels) Market makers have to take this bet to protect themselves against further selling and price decline. they are going short from .0003 ( so they are taking all the company wants to sell at this price)...........knowing that latter when they have taken it all they will drop the price and cover at lower levels or hope the company goes bust at zero.That is why all the trades are at .0003 except for an occasional private investor that panics and buys at the ask............which the market makers are glad to sell to you since they have a boat load at .0003.

when this price level is exhausted...........they do it again. that is also why there is so much volume today...............the company knows that it has to sell as much as possible at these levels for better value since we are going lower in PPS and the shorters want to short all they can from these higher relative levels because it is more profitable for them. It works for both sides...............except us (average)share holders which will get a reverse split due to all the dilution and loose money............IMO.