Market Makers Stuffed24 Apr 2020 11:31
Now that MG appears to have shown his hand and gone over the 29% level the question is what position the Market Makers are in? I reckon they are totally stuffed. Just because, (on paper at least), MG only has buying power of 0.9% (and I don't believe it because long term expats like him are all offshore with nice dummy companies in which they can hide their identities!!) it doesn't mean the end of the bull run. Actually, if you look at the history of MGs buying, it has all been crisp and clear, 1mn shares, 2.5mn, 5mn and 10mn at a time. MG's buy trades all came from market makers aside from the 9% he got from the placements. They have not had a chance to sqaure their books yet. They are massively short.
When this thing gets suspended, they will be up S*** Creek without a paddle. Remember, this stock went from nothing to 0,0045 in a week in December. What is different this time around? well 1) MG has hoovered up 19% of the company which used to be part of the free trading float, so the stock is much more tightly held then it was and therefore much more sensitive to buying pressure 2) The last thing the MMs want is to have the stock suspended without being able to cover their short positions. Don't forget, MMs are not required to infomr the market that they are short. But I can absolutely guarantee that they are..... VERY short!! You can bet my wellington boots on it. Hold on guys, this isn't over yet. When the market makers acramble to cover their short positions,, this thing will go stratospheric, never mind nuts. And don't forget, MG probably has a nice structure somewhere which means that he can continue to buy in the market if he wants to. Enjoy the ride all, pile in..........this is going to be fun!!!! Watch the market makers BURN!!