Here's what VFIN does. How he can do it with NECA is the question of the day! Florida VFIN is a market maker who is traditionally known to trade shares being diluted by the company via toxic dilution (also known as conversions or dilutive financing).
All 3 of those things (toxic dilution, conversions, and dilutive financing) mean the same thing. It means the company has issued shares in exchange for cash. Those shares are typically issued at a 40 to 60% discount to current market rate. This strategy is great for the company because it gives them cash. But it's terrible for shareholders as it dilutes the share structure. Just like with economics 101 for any product...the more you have of something, the less each one is worth. And sometimes you'll hear a shareholder say, "It makes no sense to sell at these prices." But if you're a toxic finance company who has just been issued shares at a 40% to 60% discount to the current market price, you could care less what the current price is. You sell your stock, make your money back, plus a very healthy return. You give a crap less what shareholders think about your dilutive strategy.
While there's no concrete proof that VFIN was here to sell shares that have been issued via a dilutive financing, the odds are very high that is what happened. The good news is that despite all this selling, the stock closed at almost the high of the day. Once this diluter backs off a bit, we might very well see 6's, 7's, 8's here again.
Also, if you want to watch the movement of VFIN and all other market makers, I'd highly suggest spending the $12 to $15 per month and getting Level 2 quotes. Trading OTC stocks without level 2 quotes is like going into a sword fight without a sword, IMO.
Hope this helps.
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