InvestorsHub Logo
Followers 225
Posts 32341
Boards Moderated 3
Alias Born 10/10/2005

Re: gmjones99 post# 4562

Thursday, 07/28/2011 11:00:07 AM

Thursday, July 28, 2011 11:00:07 AM

Post# of 44528
My bet is that investor has not gone anywhere--just shopping for a lower price and trying to clear out any real overhang. Kind of like--"you want to sell a bunch of this illiquid stock you own? I will buy up to 1 million shares--at this price." Then, if that seller bites, the new owner knows that he at least handled one million shares that basically was going to go into the market.Better to buy it low and clear it out. Good strategy, IMO.

Why buy at .011 right now if you want 1 million shares--at a lower price. And if you bought that $350 at the ASK, there may be more to sell that show up --so you did not clear out much of the overhang.

By putting out a bid off 1 million, the seller has to come to that price and take "advantage" of the liquidity to exit.

Watch--the bid will be back-- and it may be at a higher price tpo tempt a seller.