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Part 4 ( last part)
However, an indirect approach tends to weaken the path of least resistance before slowly
overcoming it. The most effective way is long-term investors slowly accumulating and holding thus
drawing the MMs out of its defenses making them as naked as their short position. This is war so this
slow accumulation and holding for the long term easily achieves the desired effect to force MMs to
cover and knock off the tactics or bury themselves deeper.
The MMs when caught will especially use every trick and tactic in the book to get a Bear Raid thus
playing on the individual fear of most people. The MMs feel they have information and position
advantages over the investors as long as the holding of the stock is in weak hands or short term
holders. Since they are OTC BB MMs who believe all OTCBB companies are not worth investing and
management is ineffective regardless what is happening within the company.Furthermore, MMs
know they are in the position to impose a great deal of influence in OTC BB stocks trading when it
suits their needs.
This inherent power of position enables the MMs to move the markets at any time up or down. As a
result, the only way to draw them out of their favorable position is going long. Now this does not
mean just any company but to effectively nail the MMs, Longs must find the great company on the
floor and accumulate long before the MM tactics and games begin.
Boy, when this happens, the MMs are not very happy campers. The investors and traders are
supposed to be doing that no them. Now it becomes time to pull out every trick and tactic in the
book in order to attempt to get a Bear Raid at every dollar mark or percent from where the stock
started. Could be a penny in smaller priced securities? What MMs do is give you a chance to make a
small amount of money for your momentum and day trading style by shorting it at these levels and
trying to get a bear raid each time. Each failure is compounding the MMs short position so they let it
go to the next level. Now come more deliberate tactics MMs use to coerce Bear Raid or panic
Once the MM is caught short and the strength of the buy is overpowering the MM will want to cover
his short position. So the MMs call up one of his friendly MMs and says some like "the weather is
sure rough today." The MM along with the other "friendly MM initiates a down tick about the same
time. Now this can also be done with a certain amount of shares such as an infamous 100 shares
flag. This down tick gives the illusion of weakness designed to hopefully begin the bear raid of
selling. The fickle, fearful, day trader, momentum and short term begin to sell out allowing the MM
to cover his short position at lower prices. They will move it down quickly to get it to a price of least
financial damage. Problem they have is long-term investors in the OTC BB. They start accumulating
and buying comes flying in when they take it too far thus the MMs took it to the point of volume
again and not only investors the other MMs step in the make money on the spread.
Alas the poor MM does not get to cover. Now comes various tactics like stalling, boxing, or even
locking the Bid and Ask for a while.
Of course, MMs aggressively deny any sort of collusion designed to fix quotes or spreads, but a
recent SEC investigation tells another story.
MMs have a vast resource of tactics and it would take probably more than my lifetime to figure
them all out.
So how do investors somehow manage to overcome the obvious deception in OTCBB arena? One
answer is indirection trading style by going long which the MMs do not expect. In the war between
investors and public companies on the OTC BB vs the MMs, if the MMs have all the advantages due
to position or other factors, direct confrontation such as momentum or day trading hitting the stock
is a definite death sentence.
They need both buy and sells to get the maximum action. Remember, MMs play the volume. If the
volume decreases and there are mostly Buys that become a one way volume, Buy volume. So what
they do is let the stock run up to a price where it runs out of steam. They fill all the buy orders there
that they can and then comes the pullback one way or another naturally or induced. During the pull
back they can buy tons of shares and flip them to those averaging down or trying to catch the
bounce. At some price, the stock will be relatively stable and yield the most volume. Now that is the
average price you will see
The average price is the point where a stock seeks a level where MMs can profit on the most
volume. So during the day that is the price that MMs and momentum/day traders want to see the
stock at. Why? Because they know the public and dumb money was chasing the price thing up. Most
of the time, the MMs love a flurry of Market Orders which is a dead sign of an artificial run or
momentum. Merely it is money in the bank for them. Most get hung in a momentum or day trade or
by the tactics of Market makers, who are in the business to screw the public every chance they get
and the NASD is not going to do anything about it. They are merely making the market liquid is there
The market makers have created an added complication to the OTCBB's chaos of the already volatile
intra-day price movements created by dumb money, momentum and day-traders. MMs can not
relate to long-term holders in the OTC BB. That makes absolutely no sense what so ever. They feel a
large percentage of trades in the OTC BB market consist of short-term or day-trades, MMs merely
view the barrage of buy and sell orders as relatively neutral to the market. How they figure it is when
the average dumb money buys shares in a company, the MMs feel or rather know with some
certainty it is very likely that dumb money will want to sell back those shares relatively quick on the
Now somewhat comfortable with this logic the MMs merely short sells into the buying and attempts
to take the stock down in an effort to "shake out" the weak. Since it is tough to know for sure
whether a move is the beginning of a trend, or a routine shake out, this type of deception works
quite well for the MMs. What the long-termers do to a stock is surprise the MMs because instead of
falling the shorting has no effect and the price goes up. Now that puts the MM at selling low through
shorting and thus having to buy high in order to cover.
Hi All - I’ve had this article a few years but it is worth a read.....sorry for the long post. Newbies would do well to take note. MMs know LTHs are not push overs. Also what is described fits what has been occurring here the past week of trading.
OTC = ‘over the counter’ very similar to our AIM ‘alternative investment market’
BB = Bulletin Board
Market Maker's Operating Procedure
The savvy long-term investors never chase stocks up. For the most part that is momentum players
and daytraders where most of it or what follows is dumb money. Instead the long-term investors use
a couple of simple strategies in order to position themselves. One is to find a stock no one immediately sees has huge potential and accumulate. Long-term investors are not interested in
trading against the public mind or the dumb money. That's where the majority of the money can be
made but even more can be made if the base of a stock is held extremely strong by investors.
However the second is not to doubt the research which is the underlying basis for going long and
More and more investors are winning the game nowadays despite all bashers that float through the
Internet that has become part of the game. Floor traders of market makers often watch CNBC, news
wires and bulletin boards in order to follow the market during trading session. OTC BB market
makers (MMs) don't use fundamental and technical analysis. However, what they do realize is a lot
of dumb money does use this newest nitch charting or TA (Technical Analysis) to run a stock either
up or down. To the MMs this is like taking candy from a baby. Simply they will paint the tape and use
whatever tactic to affect the charting bands. Thus the public and dumb money they will have eating
out of their hands. Effectively the MMs can show a strong stock growing weak by manipulating the
close price in order to generate selling volume, delaying trading time to manipulate trading
activities, or even stalling the ask without honoring orders to hold a stock price.
MMs follow a simple code of business when making a market in a stock especially an OTC BB. That is
the level that stocks will seek that yields the most volume. Now this is very important because they
make money on the volume buying at the bid and selling at the ask. In other words, by making the
market they are buying low and selling high. Now smart money adheres to that rule, so do all the
market makers. They could careless whether the stock is at $83 or at $0.23. All they care about is the
action thus being able to sell stock at the offer (The high) and buy stock at the bid (The low). To
increase their profitability, they make the spread as great as possible on as many shares as they can
especially if the volume falls off.
When they have mostly all "buy" orders, that's not the price that's going to yield the most volume.
Nice workings and thought process SOG
It is strange that Tim confirmed the manufacturing route for SDC-1801 was all done but that SDC-1802 was still being worked on, I would have thought the manufacturing route would be the same for both compounds?? Even possibly the same organisation?
I mentioned a few weeks back when I had a stab at a news drop date that IMHO it is inconceivable that SAR have not been in high level strategic planning meetings with government reps from UKRI, AGILE, Antivirals Taskforce and the cabinet office scientists.
Ever since Boris made his announcement of a covid pill by Autumn (coincidentally 1 day before Parker’s tweet (Major Development) and 2 days before our ‘delayed for no reason’ half year results - which I believe were delayed to get data from UKRI to the cabinet office) the government spin doctors and speech writers would have been controlling this world changing news.
Don’t forget I specifically raised a question at the meet the investors event about UKRI reporting and did they know about our progress. John responded ‘live and unscripted’ that a UKRI had witnessed regularly the progress and had reported back.
Since then IMHO the back rooms of Whitehall have been extremely busy strategically planning the next steps and designing clinical trials with SAR. They would be securing production, logistics and storage for a massive rollout. Legal teams would have been drafting agreements between all stakeholders.
All will be revealed soon. Boris will be centre stage hailing UK Scientists and Sareum.
If your DAFT enough to have stop losses set, don’t be surprised if you get taken out......MMs know that holders will set them at 10% below the current sp.....they will brutally drop it just to harvest cheap shares.
Would rather be spiked than back stabbed......
You have been warned
In comparison to last week and earlier this week, today looks relatively quiet. Only 4m shares trading so volume is lower and the swings not as volatile.
IMHO those who wanted in are in and those who are out waiting for the news are out.......should be a peaceful day without too many of our doubters/panicked/derampers (hope I didn’t jinx it ).
Great info flowing from our LTH’s. Keep up the good work
Some startling numbers below on the weekly case increases across the world........even more worrying, some of these countries are well into their respective vaccine rollout’s..........mutation appears to be bypassing the vaccine.
South Africa +51%
No one is protected until everyone is protected.
Antivirals and immune suppressants will be a much needed and eagerly awaited addition to the virus armoury.
Great post Bobbler
Researchers have discovered five genes associated with the most severe form of COVID-19, enabling them to predict the effect of potential drug treatments on patients.
Ours was one of the drugs chosen to be tested as a therapy fir one of these 5 genes (Tyk2). Funded experiments, nearing or at completion, HNWI loaded up with £2.3M, UK Govt in desperate need of treatments for covid ahead of winter, research backed by many respected and leading organisations.........
From Sky News earlier
Boris Johnson's 'science superpower' ambitions see new roles for Sir Patrick Vallance.
Boris particularly pointed out to look for a cure to cancer rather than treating it......
Bodes well for our little Cambridge outfit.
Speaking on Sky News, Dr Susan Hopkins, Public Health England's director for COVID-19, warned "we may have to do further lockdowns this winter" depending on whether hospitals start to become overwhelmed.
But she added, “I’ll think we’ll have alternative ways to manage this through vaccination, through antivirals, through drugs and through better testing that we didn’t have last winter”.
I particularly like the alternative ways to manage especially antivirals - she must, at her level, be privy to what’s going on with UKRI and Sareum.
So here we are 18 months or so into a global pandemic that has cost not only misery and sorrow to many families but also global economic carnage. The vaccines were developed very quickly and have mixed results regards efficacy, efficiency and take up to combat the virus (search my previous post from the Lancet). If the vaccines were working then why:
1. Has the UK Govt launched an Antiviral Taskforce, the AGILE program and publicly announced a ‘covid pill’ by Autumn?
2. Has the US this week committed $3Bn to push Antiviral therapeutics to treat covid?
3. Has the US last week placed $1.2Bn worth of preliminary orders for Merck’s antiviral, subject to it providing positive results - yet to be delivered?
These global giants (and indeed the other G7 nations) know full well that the virus cannot be overcome with vaccines and that more economic chaos and strain on health facilities is on its way in the Northern Hemisphere winter. The virus will not stop mutating as this is what it does to survive. It will surely circumnavigate the vaccines.
The UK and US (and G7) are rightly concerned and need antivirals to work in tandem with vaccines to help manage the impact the virus creates.
Won’t be long now and we should be accepted into AGILE with fully funded fast track trials, routes to manufacture, worldwide exposure on mainstream media and large pharma knocking on the door to ‘partner’ with Sareum.
Expect the Sareum RNS to drop when least expected!
Good points but also remember our other likely news events which could equally multi bag the share:
1. With the new cash runway (courtesy of the confidence of our HNWI), the CTA for SDC-1801 could go in at anytime.
2. Further development of SDC-1802 as per reason of item 1.
3. Co license or on license of SRA737
4. Update or release of details on the new patent applied for in April 2020.
So much news in the pipeline that could launch this.
Hi Krone/Ahfam /SOG/citizen
Certainly related to SDC-1802 (cancer)but nothing to worry about as this was granted already. Looks like to tying off loose ends that may well set the precedent for granting SDC-1801.
Where is FADEC he is the guru on all things patents
Same reason to change thread OFF senator
And this is the reason the world needs antivirals - again from respected resources at Endpoints.
*The latest news comes at a critical time in the war against Covid. Vaccine resistance has now slashed vaccination rates in the US while the most affluent nations in the world stand first in line for the best vaccines. Meanwhile poorer nations are being forced to stand at the back of the line, waiting indefinitely for the vaccines to arrive*.
What did Parker say again - Major Development for the UK and the world!
Not long to wait now.
Reposting so as to change the thread line OFF senator
On Endpoints today.
“New antivirals that prevent serious COVID-19 illness and death, ESPECIALLY ORAL DRUGS that could be taken at home early in the course of disease, would be powerful tools for battling the pandemic and saving lives,” said NIAID director Anthony Fauci
Biden recently forward ordered $1.2 bn worth of Merck’s offering even though it’s sceptical on results........the western world/developed economies are desperate for antivirals.....