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05/25/10 2:10 PM

#5187 RE: sailcat #5186

Folks, let me slow down as apparently you all think I am attacking the security for the company, you could not be further from the truth. I agree the company APPEARS to be in a very good place. They have what appears to be a solid business, growing sales/revenue and SEC filings which indicate apparent truthful reporting. And as such the PPS should appreciate over the LONG TERM.....
All of this being said, a stock moves, or more accurately should move based on T&S as investors choose to trade, buy or sell a given security, you all know this. What folks often do not realize is an MM will use their own (companies) capital to either trade, buy or sell a given security just as well, and they have substantial capital. This along with the fact you can not differentiate their trades/buy/sells from those of an individual investor, make it very difficult to determine who is driving the action....this is why having as many MMs in a stock as possible is a good thing. Competetion will ensure a proper PPS. This is why I post comments concerning NITE and ETMM so much.
They are often the only two MMs with current bid and asks in on the stock. Sometimes DOMS and AUTO will step in with other MMs, but often not for long. Are they trading for an investor...maybe...are they trading for themselves...no one honestly knows.
As far as the rules go, OTC has proven over and over again companies on such exchanges are much more prone to violoate SEC regulations to include the MMs on them. Do some reasearch on NITE (new ticker today KCG) and see what you find....and do some research on Spongetech as it goes for companies on the OTC/BB exchange. Simply, I am not assuming they or the MMs are participating in illegal activities, simply saying it is much easier to do so on these exchanges and SEC regulators often do not take the time to investigate such problems until after investors are fleeced of their monies.
All in all, just because a company has a solid business does not mean appreciation will occur in the short term. Iceweb in my opinion has many headwinds, number one being the exchange they are on...number two is the type of investor they have in the security (those wanting a quick buck/flippers), three, the MMs involved in their security (proven to participate in illegal activities (front running and the like)) and finally, the debt they currently have on the books.
Can all of these things be fixed...absolutely, and will they, my opinion is yes, why I hold a substantaial long position, but to simply think because they APPEAR to have growing revenues or more importantly sales is the cure all, would be short sighted in my opinion.
Best of luck to all....