Replies to post #59629 on Protective Capital Structures Corp. (fka PCSO)

[nipper1968]

All I ever hear is MM manipulation....give me a break.

[GasDoc]

Breharb,

The MM's are currently offering best prices of 0.0002 to buy shares from investors (BID), and 0.0003 to sell shares to investors (ASK). I don't believe trading at 0.00029 is a possibility for 3 reasons:

1) most electronic brokers do not allow individual investor trading to 5 decimal places (can't speak to "behind the scenes trading", but we wouldn't see that volume anyway);

2) The reason 11 MM's are even interested in this sub-penny pinkie is that they are making a KILLING on these trades!! The current margin (difference between ASK vs BID) is 33%, which translates to a 50% profit for every share they trade.
Why would 11 MM's bother with a stock at 0.0001 or 0.0002, which has a high probability of going to NO BID, unless the reward of VERY HIGH profit margins for them significantly outweighed the risk of getting stuck holding 100's of millions of these shares?

3) Computer systems are programmed to round numbers to the nearest decimal place. So, a share price of 0.00029, if it did exist, should round up to 0.0003 when displayed to us. I can't imagine 0.00029 rounding DOWN to 0.0002, can you?

IMO, because such a huge gap exists in HCPC's ASK vs BID prices, every time we see a trade at 0.0002, it's a sell order, and every time we see 0.0003, it's a buy order.

Hope this helps,

GasDoc