Innovation Pharmaceuticals Inc (IPIX)

[Orion Nebula]

Whether CTIX is subject to MM manipulation is probably not the question. But it is undeniable such manipulation has existed and probably will in the future. Some have been litigated. Knight (NITE) has had to pay the piper in the past.

The curious thing to me is the ability of the MM to trade the stock in one branch of their company while being the MM for the stock at the same time. Talk about a conflict of interest! This had led to cases of front running where the MM can time the trade of their securities based on what the little guy is doing in the same security.

I watched Aegis on the day of the recent NVIV debacle rush out a buy recommendation for the stock predicting a price of $6 to $7 for the stock while it was crashing. Why might they do that? Aegis was the MM for NVIV. Anyone who thinks the Aegis equity arm did that independent of the Aegis MM arm is never going to sell me anything.

Coordinated activities of MMs to defraud investors was a litigated issue on the Nasdaq in the 1990's. Things have been tightened up but these are clever people. If the past is any indication I do think some MM firm (not all) would defraud investors if they felt they could get away with it. Or even if they felt the fine might not outweigh the reward.

Finally, on the issue of just doing their job which I think Pete mentioned. I think some of these people have little conscience and view these types of manipulations as their job. I read an interesting article by a wall street guy who said if they did functional MRI scans on the brains of the people on wall street it would show antisocial behavior to down right psychopathic behavior in about 90% of them. This is a cheap shot with no backing but after hearing that guy at Goldman's declare they were just doing God's work in the bundled derivative business it does make one wonder.

No conspiracy theories needed here. The track record is there and last time I looked greed still exists.