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Mitcham Industries Inc. Message Board

  • jimserur jimserur Mar 17, 2006 10:41 AM Flag

    The Real Problem For Mind Stock

    I own several thousand shares of this stock and follow it closely. The main problem is the fact that it is traded OTC and the dealers making a market in the stock are forcing the bid down while at the same time setting the ask higher than should be the case in the current market.

    If the price of crude takes off this stock is going to move back into the 20s quickly. In the meantime, we are going to have to be patient! Good luck.

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    • peter_norths_proctologist peter_norths_proctologist Mar 17, 2006 11:58 AM Flag

      <<< The main problem is the fact that it is traded OTC >>>

      OTC? Not sure what you mean. This stock is neither bulletin board nor pink sheet. Nor grey market. Nor even small-cap NASDAQ(SC). It is listed on the Nasdaq(NM).

      Can you please explain what you mean by OTC?

      I think the reason why the stock is currently weak is because it's working through consolidation after the big sell-off. It happens. It's normal. It could last for a few months. Or a few weeks. Who knows. But the stock will be in stronger hands when it's over. Personally, I thought the stock was overvalued in the $22.00+ range. And apparently, some insiders did as well. But notice Blum and the CEO did not sell. They both bought on the open market up to $12.00. They're the ones to watch. If I get a chance to buy at $13.00, I may go all in. You never know. Stocks like this, which were previously overbought, often correct via oversold conditions. Just have to be patient.

      Forgive me if I'm stating the obvious.

      • 2 Replies to peter_norths_proctologist
      • counterThis is a reply to peter_norths' message of 03/17/06 in connection with my message "The Real Problem For MIND Stock".

        Please excuse the failure to explain the point I was trying to make more clearly. Without going into a great detail, I was trying to point out that trading in MIND is done similar to trading in stocks in the OTC (over-the-

        grey market, not even small-cap NASDAQ. It is listed on the NASDAQ National Market.

        OTC (pink sheet) stocks are traded through broker-dealers who make a market in certain stocks. A buyer purchases stock from them at the "ask" price and sells to them at the "bid" price. Thus they make a market in a given stock or stocks. In some cases there is only one dealer in a given stock. Sometimes there is more than one dealer making a market in a given stock. The dealer or dealers set the price (bid and ask).

        In the case of MIND, I am not certain as to whether there is only one market maker or more than one. In any event, the dealer(s) set the price at a given time based on market action and what the traffic will bear.

        What I notice is the unusually large spread at times in the spread (bid and ask) on MIND. It can kill if you if the volume is light and you are not careful. I never place a market order on MIND. Too bad MIND is not listed on the AMEX or NYSE!! We would be a lot better off not being at the mercy of a dealer or dealers.

        Forgive me for the lengthy explanation!

      • is that its garbage........... simple, no guess work, shear crap. hope that helps

    • well said. Also to expand on this the price
      should run into the $20's as earnings draw
      near. No one wants to be out of the loop when
      "strong earnings" are released.

      More drilling is needed and we're in the early
      to middle term of a 3 year oil cycle run.

      Mitch out

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