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nforgood

04/20/10 1:02 PM

#8506 RE: gappa2 #8504

well the market makers are buying it in a way............but they are taking these shares as a short position ( a bet that the price will fall and they cover at lower levels) Market makers have to take this bet to protect themselves against further selling and price decline. they are going short from .0003 ( so they are taking all the company wants to sell at this price)...........knowing that latter when they have taken it all they will drop the price and cover at lower levels or hope the company goes bust at zero.That is why all the trades are at .0003 except for an occasional private investor that panics and buys at the ask............which the market makers are glad to sell to you since they have a boat load at .0003.
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Gapper, you're well intended here but you don't buy a stock to short it. This stock is too low to short so this isn't due to shorting but is due to selling approved shares and that has to happen to cover expenses they incur with legal fees and accounting fees that are very expensive. The only reason a mm would buy now would be one of two reasons: (1.) To cover stock they shorted (SOLD) at a higher price or (2.) They are accumulating shares believing it will go up. A move of .0002 is a 66% ROI.
Try to buy 7 million shares....You can't get your order filled.
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tdc

04/20/10 1:49 PM

#8508 RE: gappa2 #8504

Gapper - that is impossible, because someone has to buy the shares that are being sold. They can't short a sell. They can only short a buy.