MHHC Enterprises Inc (MHHC)

[jrf30]

Line,

Just an FYI for you. Not a positive or a negative, just information.

"but there is only 5,000 shares in between .0005 and .001. If someone just spends $2.50 to take out those shares the next ask is .001. "

Not true. The ask currently at .0008 is showing that market makers lowest ask. So it may show 5,000 at .0008. But if he has 3 million at .0009, none of that is showing, since the .0008 is lower and only HIS lowest shows at one time. If a different MM has a low ask of .001, then you see that one too, and think the amount needed to go from .0008 to .001 is only 5,000 shares, but the first MM may have lots more in betwen that is not showing.

Secondly, - and this shouldn't be this way but it is, many times they just put 5,000 up on the bid or the ask, and that means when someone wants to buy that they call that MM to say "I have a buyer at .0008. You show 5,000. I would like them. What else do you have?" and they answer "We have another 2 million at .0008". It is not showing, but since they are the ony market maker at that level anyway they know they will get called, so they hold it in their hand but not on the screen.

It only happens that way on thinner traded stocks. On the better traded stocks they are afraid to do that because someopne may call their competition and do a deal and they don't get the trade. here it can happen though.

So although level 2 helps in many ways, it is not a complete picture. the first situation occurs in all stocks, if the MM has more orders behind the first one, and the second situation only occurs in thin traded stocks like this.

Hope that helps some.