Posted On: 11/11/2014 1:26:49 PM
Post# of 30035
I also want to discuss whether or not institutions are going to be positive for this company. A large institutional holding realistically only lowers the float metaphorically. Less shares are able to be churned by retail resulting in the price to go up in excitement. But is the initial investing of AMBS by institutions in the open market a good thing for us retail? Without catalysts to keep the volume high continuously, I say it is a very bad thing.
Let's look at it this way. Institutions buy shares in big blocks. The inventory of shares these MMs have is finite. If all institutions are buying at once they MMs are going to have a hard time delivering these shares and keeping the trading fluent. The market makers are then going to be selling shares they currently do not have in their possession or will have to borrow shares to sell. And we all know what that is called: shorting. The MMs have to absolutely deliver shares or they will never be called upon again for an order.
MMs are not in the business of losing money. Everyone knows the games of taking out stop losses and manipulation on OpEx to clean out premiums (because they are the biggest writers) If there is no substantial revenue or cash in place for AMBS, they are going to need those catalysts to keep interest and volume high. We all know what happens where there is no volume. Now imagine what happens when there is no volume and MMs have shares they need to cover? Just image some of those games being played. You can forget about trying to invest with stops.
This is also just my opinion, feel free to disagree because I don't take it personally. I am just trying to incite or stimulate new conversation.
Let's look at it this way. Institutions buy shares in big blocks. The inventory of shares these MMs have is finite. If all institutions are buying at once they MMs are going to have a hard time delivering these shares and keeping the trading fluent. The market makers are then going to be selling shares they currently do not have in their possession or will have to borrow shares to sell. And we all know what that is called: shorting. The MMs have to absolutely deliver shares or they will never be called upon again for an order.
MMs are not in the business of losing money. Everyone knows the games of taking out stop losses and manipulation on OpEx to clean out premiums (because they are the biggest writers) If there is no substantial revenue or cash in place for AMBS, they are going to need those catalysts to keep interest and volume high. We all know what happens where there is no volume. Now imagine what happens when there is no volume and MMs have shares they need to cover? Just image some of those games being played. You can forget about trying to invest with stops.
This is also just my opinion, feel free to disagree because I don't take it personally. I am just trying to incite or stimulate new conversation.
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