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Re: Ninja7 post# 139983

Tuesday, 06/29/2010 5:48:05 PM

Tuesday, June 29, 2010 5:48:05 PM

Post# of 179215
Inventory implies "not short". I'm sure many MMs do buy ahead of a hype based run. After all they see the bids and asks. The only thing they can't do is trade ahead of their customers. They no doubt love these runs with no underlying fundamental value - high volume, large spread, what's not to like? Why would they want to stop a run? They make money on the spread. If anything, the higher the price, the bigger the spread.
If anyone were trying to load up inventory, you'd see a healthy volume (at the last run of CDIV volumes were over a million shares a day on average) and an increasing price.
Think about it. You've got a company whose fundamentals would have a hard time supporting 1 cent/share that's selling at 30+ times that. Meanwhile, despite the falling price, there are few trades.
At the end of the day, if you really believe in the FLD then you should be buying big. I think this will end up far lower than it is today, but because any large sellers will tank the price, it's going to be a long slow decline with low volume.
Time will tell. Best of luck.

The only thing necessary for the triumph of evil is for good men to do nothing.
EDMUND BURKE (and others)