A little nervous about the heavy short volume. Yesterday was over 50%. On Nasdaq the computers control movement, but here on OTC these guys have more room to shake the tree to bring it back down to cover. Still hope if price starts moving up they will be forced to cover at a higher price.
"There are a few things that you need to know about the market maker NITE. Knight Securities uses the ticker $NITE. This market maker is known for being one of the most abusive market makers in the penny stock market. Most of the popular penny stock brokers route from NITE because they are quick to execute most orders. One thing that I’ve noticed is that NITE tries to #$%$ over. You have to realize that each market maker has it’s own complex algorithm that tries to make them money. Sometimes they make money by shorting the ask and then covering on the bid. Sometimes when a stock is running and you place an order on the ask and you don’t get filled, it is actually the market maker taking shares on the ask. Then they move up the bid and ask and tries to bait traders into hitting the ask again to sell the shares that they just bought. You’ll also see MM’s shorting a stock as it runs up because they know that it will eventually come down. Think of it this way. If they are able to short a stock at .01 and it runs to .10, you will hear people on the stock forums saying, shorty is going to get burned, or this market maker is short. In reality, it really won’t matter because naked shorting really isn’t enforced and any short will eventually be able to cover if they just keeping shorting more. If they short at .01, .02, .03…to .10 it appears that they are really short.
Then what happens is they keep shorting more at the top say at around .10. Then the promotion is over and then over the next few days the MM is able to short more in the .06 to .08 range. People keep buying because they think more is coming, but the promo is over. The price keeps decreasing over the next month back to .02 to .03 range where the MM is able to cover for a profit. So as you can see the market makers like NITE never lose and it is only the bag holders."
lots of warrants perhaps being shorted against the box... free money... if you own at 1.25 and short at 2 + then if the price drops to 1.25, you cover (close) position w/shares you own... make tidy profit w/little risk because you already own shares and shorted against the box... if news drives price up w/volume, again you close out your position w/shares you own... just surrender profit from short.. little risk, quick gains.... that may be happening, especially since we have news that will be telegraphed in advance of 4-30 w/adcom or no adcom .. that being said, I think if approved, this treatment will be explosive.. not pills, not film, not liquid methadone... nothing on the market currently will come close to treating opiate addiction w/prob.
I hear what you are saying because I have wondered about the price movements of this stock, especially when there is low volume. BUT, let's review the bidding...
In the next couple of months we will hear about the Adcom, likely receive FDA approval, receive an inflow of cash (another 50M potential), have speculation about projected sales (300-500M), speculation about ROW and other applications of ProNeura, continued news about the massive problem of abusing drugs intended to battle opiod addiction. In addition, anyone who has done their due diligence on this has decided to invest heavy, others doing DD will think similarly...
I think shorts are playing with fire and will likely get squeezed. It seems they are betting on the fact that they might have another month or so when they can play their manipulation/low volume games. They must be better market timers than me - I can;t play that game. Short term maybe a minor worry, but longer term (only about two months) no worries!!