zen-GEMM is certainly on radar because of the
SHO listing, which if enforced would mean that the MM's should be forced to cover and balance because GEMM has been on the list for the maxiumum days for MM compliance.
It will be a true test to see the effect, and like you I have no predictions on what we'll see.
It is the strong armed trading tactics of the MM's that have always concerned me as much or more than any other issue we discuss, including nss. I know I use that stupid poker analogy, but it is absolutely true. They play in the hand, meaning they are allowed to have long or short positions in stocks. Further they deal the cards and name each bet, meaning they decide with every trade how big of a share lot will be traded and what the Bid/Ask & Last price is.
I won't bore with example after example because I think we all see stocks being allowed to go up for absolutely no reason. Further, some stocks with great news and no dilution get frozen and stalled, then MM's start a walkdown.
GEMM was like that after their Project 1000 news. A viable diamond mine for crying out loud. They traded in the high teens last year on no news with just the potential of success. As we saw last week after their news, GEMM rose strong and stayed strong until .09. MM's froze trading at .09 creating doubt, they set up their short positions, then and simply kept jumping under people's Bids and only allowing trading at the bid 95% of the time and not the ask. They do it again and again every day.
No I don't think GEMM should have shot to the moon last week, but if allowed to run they would have hit or slightly surpassed last year's level easy in my opinion.
So you bet I'm watching the SHO effect. But I have learned hard lessons in this market to watch other MM trading tactics that seem unethical and could well be deemed illegal.
But when you deal the cards, name each bet and play in the hand anything is to be expected, but it certainly doesn't mean that it is right or legal for them to do what they do.
Have a good Saturday zen. : )
Bo
