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Posted On: 01/04/2019 6:57:46 AM
Post# of 75068
It's not just their greed actually, and you may be disappointed in the results of your efforts to take down what you perceive to be "the problem".
A market maker is also helping companies like Rocky Mountain High Brands in their early years by maintaining liquidity, or in other words, keeping the trading volume healthy. If there's not a huge amount of buying pressure on a particular security, YET, then running the price up into "overbought" territory and holding it there (if possible) will only lead to a drastic drop in trading volume.
WHY?? Because very few investors or flippers will buy the stock if they feel it's overpriced. Think about that for a minute.
First off, it's not likely with a stock that's being flipped a lot or channel traded because flippers simply won't hold their shares and sit on profit. It's just not what they do. So they dump those shares and bargain hunters (themselves included) are more than happy to help ratchet the pps right back down as they load up for another flip.
Next is the reason it's good for the small startup companies. In order to access their financing which is normally covered with shares of common stock, the financer will need to be able to sell the required number of shares before their deadline. To protect our interests, the financer is only allowed to hold a specified number of shares for a specified period of time, so they have to sell shares to comply as well as collect their profit. That cash isn't free.
IF the trading volume has stagnated for some reason, they won't be able to sell the number of shares they need to sell, making it difficult for the company to access their financing. With the growth of the company, this type of financing arrangement will become a thing of the past. This company should get there faster than people think.
IF for some reason that trading volume were to stagnate, the MM's would be able to get it back into a price range that appeals to traders and the trading volume would pick back up. You'll never force this to run. MM's aren't bothered much by the SEC. It's viewed as tough love, or necessary evil.
The only way to beat it is if you accumulate and hold shares until the company moves beyond that vulnerable stage, just as we are finally beginning to do.
Once the revenue streams explode for Rocky, doors are going to open and the cause of the frustration you're feeling now will become a thing of the past.
At some point not that far down the road, the company will be able to uplist to a big exchange and institutional investment capital will come pouring in. Even prior to uplisting, huge revenue growth will have a very positive effect on the stock in multiple ways, including a steady reduction in the need to access financing, and the ability to secure better financing terms yet again.
A market maker is also helping companies like Rocky Mountain High Brands in their early years by maintaining liquidity, or in other words, keeping the trading volume healthy. If there's not a huge amount of buying pressure on a particular security, YET, then running the price up into "overbought" territory and holding it there (if possible) will only lead to a drastic drop in trading volume.
WHY?? Because very few investors or flippers will buy the stock if they feel it's overpriced. Think about that for a minute.
First off, it's not likely with a stock that's being flipped a lot or channel traded because flippers simply won't hold their shares and sit on profit. It's just not what they do. So they dump those shares and bargain hunters (themselves included) are more than happy to help ratchet the pps right back down as they load up for another flip.
Next is the reason it's good for the small startup companies. In order to access their financing which is normally covered with shares of common stock, the financer will need to be able to sell the required number of shares before their deadline. To protect our interests, the financer is only allowed to hold a specified number of shares for a specified period of time, so they have to sell shares to comply as well as collect their profit. That cash isn't free.
IF the trading volume has stagnated for some reason, they won't be able to sell the number of shares they need to sell, making it difficult for the company to access their financing. With the growth of the company, this type of financing arrangement will become a thing of the past. This company should get there faster than people think.
IF for some reason that trading volume were to stagnate, the MM's would be able to get it back into a price range that appeals to traders and the trading volume would pick back up. You'll never force this to run. MM's aren't bothered much by the SEC. It's viewed as tough love, or necessary evil.
The only way to beat it is if you accumulate and hold shares until the company moves beyond that vulnerable stage, just as we are finally beginning to do.
Once the revenue streams explode for Rocky, doors are going to open and the cause of the frustration you're feeling now will become a thing of the past.
At some point not that far down the road, the company will be able to uplist to a big exchange and institutional investment capital will come pouring in. Even prior to uplisting, huge revenue growth will have a very positive effect on the stock in multiple ways, including a steady reduction in the need to access financing, and the ability to secure better financing terms yet again.
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