Replies to post #139983 on Cascadia Investments (CDIV)

[kando]

wow. I just love what boils to the top in this kitchen soup! Wholesome goodness! Thanks Ninja7. I want to know more about that friend you knew- since I've just got dying curiosity to find out more about L3 on CDIV. ;)

I will never argue with that statement "our friendly CDIV MM's are desperately trying to load up inventory to offset a large short position" I really can't argue with that statement.

We may never know the 'final' answer, but it's out in the open somewhere. ;)

[Toxic Avenger]

Inventory implies "not short". I'm sure many MMs do buy ahead of a hype based run. After all they see the bids and asks. The only thing they can't do is trade ahead of their customers. They no doubt love these runs with no underlying fundamental value - high volume, large spread, what's not to like? Why would they want to stop a run? They make money on the spread. If anything, the higher the price, the bigger the spread.
If anyone were trying to load up inventory, you'd see a healthy volume (at the last run of CDIV volumes were over a million shares a day on average) and an increasing price.
Think about it. You've got a company whose fundamentals would have a hard time supporting 1 cent/share that's selling at 30+ times that. Meanwhile, despite the falling price, there are few trades.
At the end of the day, if you really believe in the FLD then you should be buying big. I think this will end up far lower than it is today, but because any large sellers will tank the price, it's going to be a long slow decline with low volume.
Time will tell. Best of luck.