Replies to post #16513 on Hemi Energy Group Inc. (fka HMGP)

[mktplyr]

FWIW here is my theory on the non-trading issue. With a bit of broker dealer experience under my belt (5years), I know that we have restricted stock lists that are created for various reasons. Usually the reason is "unable to settle", which means that the MM's are unable to deliver the shares. This supports Lowmans over sold NSS theory as well. So, if many broker dealers are unable to buy, the market begins to dry up so that when people DO sell, there is no buying market due to the restriction, ergo the price goes down. By this mechanism, the MM's who are short can ride the sell-side bias market down and cover (maybe) once the price is low.

thoughts on this?

also, some AH trades could be MMs cross trading to reset the short covering period, I think its 13 days or something. I know it was on the series 55 license exam but I took that a few years back

[zguy]

abbam, I don't believe it either. Sounds more like a uneducated level 1 customer service rep saying something to try and take the pressure off them. 1) I can't at all see Hemi doing it and 2) There is no way a place like TDA is going to call up little ole Hemi and ASK them if Hemi wouldn't mind if they don't trade their stock because it is a bit of a pain for them. If TDA isn't going to trade Hemi stock they just won't trade it... it won't be part of some "mutual agreement". Load of bull I say :)