Quote:which intelligent market maker bids for 163,000 shares at .34 in hopes of taking a $.02 loss you idiot!
No news today. So, I will answer this question. Isn't Maxm losing money if they put a bid in at 34c and someone hits that bid and then they have to sell those shares at 32c?
No, if the big bid gets hit they will aggressive sell a lower price. When trading otc, I will but bids in below this second MM support to catch these cheaper shares.
How are the not losing money. The guys get a couple of parameters, the number of shares to sell, and the lowest price to sell those shares. I know this because trading otc, I have noticed they never sell below the conversion price... the will sell right at it, but never below. So if you can pick up shares at that conversion price, there is a good chance you make money, because others are not going to sell below it.
Anyway back to how the don't lose money. They are in the sell sharing business, they get a 5% fee, so obviously the higher the sell the better. But they will sell those new shares in addition to the lot they got. Then the get an average cost to sell, that average cost can't be below the conversion price. So if they sell 200k shares at 32c and another 200k shares at 32c they bought at 34c as bid support that failed, the average cost to sell those 200k original shares was 30c. They get a 5% cut or $3000 for selling, i.e. a gain not a lose. The noteholder gets $57,000 for selling the 200k shares, but that was only $44,000 towards the loan principal and $13,000 in profit. Even if they sold at $44,000, the noteholder is still getting 10% interest on the loan. They are making lots of money, trust me.
