Replies to post #77853 on Verus International Inc (VRUS)

[The Economist]

Many of you hear every now and then how MMs are holding a stock price down or etc. But what are they?

An MM is not some guy sitting in a dark basement, its often a firm which will specialize in a group of stocks, or have a relationship with MM's who deal with specific stocks.Its the the job of an MM to provide liquidity and in the small cap world, this is very important. Unfortunately a side effect of this job of providing liquidity are large short positions by MM's.

If I call my broker and I want to buy 1000s of WXYZ , he will call up the trader for my brokerage who then will call up a market maker who holds inventory in that stock. Most traders already have set relationships with MM's they deal with. It is the task of the MM to be able to provide my brokerage with shares, and quickly.

The MM may not have 1000 shares himself, but he knows other MM's who do, so he will actually have a short position in the stock until he can purchase back these shares. This is when most of the mess begins, MM's may try short more of the stock to get it lower so they can cover the short at a lower price.

[pennyrich]

So fair value works out to be $.04.
Do the math.
Do your DD.
Anyone have more information on the meat contracts? I’d like to review those babies.
BTW, I ran a chain of specialty food stores. I imported Olive Oil and Spices from around the world. I used companies like VRUS to bring my products to the US.
While I hate the OS it’s not the worst I’ve seen.
Removing this from the pinks is the only solution to get rid of the games played here.
That being said, I’d be VERY nervous shorting this with the last Q.
2 more quarters of the same results will make this an unstoppable stock. I can wait 6 months or more.