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It's criminal is what it is and it will never change. What am I
talking about? I find it almost ironically funny that Spitszer and
the boys are rooting through all the brokerages, looking at fraud and
trying to protect the little guy, when the biggest nightmare an
investor faces, is totally ignored. What's that? The pre-open gap and
the "halt".
The other morning CHIR was halted for trading and this is what
brought this up. Hey Spitzer, what would you say about a system that
allows people to invest their money for a 13 hour period and then
cannot make any adjustments. Meanwhile, if there is news concerning
one of the stocks in that market, the market makers can adjust the
price up or down to whatever level they please and the investor can
do nothing about it?
Well that would be illegal as heck! I think that's what any law
enforcement official might say. But the fact is that once the
afterhours market closes on the stock exchange, you better say your
prayers that nothing "bad" is found out about your stock. Because
before the next days open, the market makers of that stock can price
it at any level they feel will allow them to conduct an "orderly
market". That's pure BS of the richest kind and should put most of
the market makers in jail. Period.
Let's suppose you buy the XYZ company at 3 pm on a Tuesday because
they look like they are breaking out. You bought in at 50 dollars a
share, and when the final bell rang you were up to 50.50. Life is
good. You take the wife out, play with the kids, etc, etc, and go to
bed. The next morning you wake up, toss on the news and hear that XYZ
has been implicated in helping Alqueda hit the US. It's indicated to
open at 20 dollars. Where'd the 30 dollar difference go? "Poof" is
where it went. The market makers don't want to eat all the shares
that will be coming their way, so they just pick a price that they
think will keep "X" amount of stock coming at them and they have to
buy it for a loss.
I say "too bad for them". If they want to play market maker, they
should be involved in the risk of promoting that company. If the
company implodes, maybe they should have done better homework before
signing on to sell the stock to the public. But no, it doesn't work
that way. They get to walk away clean, often actually richer than
they started, while the poor schmucks that bought the stock the day
before are nursing a 30 dollar a share loss. That's purely criminal,
and you can bet your you know what that Spitzer and all his cronies
will never address that.
I'm not against halting a stock. I really am not, but and this is
important. I think a stock should be halted for "news pending or
breaking" and there should be a period of no activity for the news to
be spread and then the stock should be opened at the same price it
closed. If a million investors scramble to dump the shares and the
market makers are under pressure, well that's too bad. Why do they
get to take no risk whatsoever and the investing public gets screwed?
The same reason you'll never hear an analyst scream "sell your
stocks", they only promote buying. The fact is that Wall Street is
the biggest rigged game on the planet.
http://clix.to/wallmann
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Keep an eye on Medimune (MEDI) because of their nasal flu vaccine.
CHIR is a major manufacturer, but they are a bit behind schedule.
Overall, all the flu shot, nasal flue vaccine people should perk up,
including IDBE! They shipped a ton of vaccine to the Canadian
government and they are expanding their operation so they can ship to
the US. This group will probably make advances, especially when the
media starts hyping the flu shot season.
--------------------
The thing that intrigues me about IDBE isn't the actual drugs they
are playing with, although it's interesting. No what gets me
interested in them is the fact that they have designed a very
interesting method of "taking" drugs by inhaling them. We profiled
this outfit over a year ago when it became clear that their delivery
method was shown to work, and now the military has just granted them
some 5 million dollars to make a nasal vaccine for SARS. If they pull
this off and all goes well, I can't even imagine the other contracts
that will come down the pike. Yes, we like IDBE.
http://clix.to/wallmann
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