KERX - Keryx Biopharmaceuticals - NASDAQ

[jason22]

Hey Doc,

So basically once the naked shorts are done, the stock would have a good chance of going up since the shorts would want to cover?

[mkmny]

There approx 14million shares short

http://shortsqueeze.com/?symbol=kerx&submit=Short+Quote%99

bookmark the site.

Doc don't they have to cover within the next 3 days?
Afterhours trading has good volume and strong buys at .55 ,

[Dr PennyStock]

Hey Doc,

So basically once the naked shorts are done, the stock would have a good chance of going up since the shorts would want to cover?

No Jason, because if the stock goes down the stock holders begin to sell, creating even more sell pressure and when the stock holders stop to sell, when the MM's feel again buy pressure, they start sell again, they will cover when they want to, this is the truth, when the shorts are guys like us, no problem, we see big short squeezes, but, when one MM is involved they do what they want, it's not the first time I see things like this, they always win.

We will see tomorrow what to do, it depends of the reaction of the stock, if the stock opens above .54 and goes up with volume, just hold, if not, we need to sell at a loss.

[Dr PennyStock]

There approx 14million shares short

http://shortsqueeze.com/?symbol=kerx&submit=Short+Quote%99

bookmark the site.

Doc don't they have to cover within the next 3 days?
Afterhours trading has good volume and strong buys at .55 ,

These 14 million shares were shorted at 5 or above, just do the math 5 x 14,000,000 = $70,000,000, it's a fortune, they will fight with all they can to cover as low as possible.

We will see tomorrow what to do, we need to act without emotions. 

[HELLAS1]

14,000,000 is a lot of shares going against us.... There is no way around it, especially if the stock continues to fall in price, it only makes them more money... Unless someone plans to buy a few million shares, I dont foresee any reason this stock should rebound and time soon...

[schwab]

So i guess the ultimate question is this -- what prevents this from happening with any of these "volatile" stocks that are falling so fast?  aren't all these going to get shorted as well?

[mkmny]

I have no idea on timing but If the company believes the outlook for the future is positive, they will step in. I'm sure they are trying to get investors to try to regain value in their stock. It is very important for them to stay listed in the nasdaq.

Also if the mm's made this money they can now buy the shares low and sell them high and make more money.
I'm emailing a formal letter to the company as well as the SEC, I know it probably won't do anything but hey it doesn't hurt to try.

[Dr PennyStock]

So i guess the ultimate question is this -- what prevents this from happening with any of these "volatile" stocks that are falling so fast?  aren't all these going to get shorted as well?

That's correct, the "only" difference is that this one was shorted not only by guys like us (private investors/traders) but also by one or more MM's. 

[Tommy86]

that was your 500th post, you´re addicted 

kidding, just very good support by you

[Dr PennyStock]

I have no idea on timing but If the company believes the outlook for the future is positive, they will step in. I'm sure they are trying to get investors to try to regain value in their stock. It is very important for them to stay listed in the nasdaq.

Also if the mm's made this money they can now buy the shares low and sell them high and make more money.
I'm emailing a formal letter to the company as well as the SEC, I know it probably won't do anything but hey it doesn't hurt to try.

Forget the SEC, they do nothing, they eat all in the same dish.

The company yes, they must be highly interested in trade above 1.

[Dr PennyStock]

that was your 500th post, you´re addicted 

kidding, just very good support by you

I never look to that, but, hey, congrats to me 

[jason22]

Who assigns these crooked MM's?

[Dr PennyStock]

Most of them are brokers, like Etrade, for example.

See here a list: http://www.otcbb.com/asp/tradeact_mml.asp?searchfor=NMKT&searchby=i 

[jason22]

Wow that is wrong, I can see how they can manipulate the stocks by keeping whats left over to themselves.   

So basically there trading pattern would look somethign like this?

Short KERX at .68, KERX goes to .67, Short more shares at .67 and stocks goes to .68, short more at .68 etc... till it closes to .65 eventually making a downtrend.  They then easily pocket the couple cents at the closing.  Then buy more the next day at .65 hoping it will be a long due to a gap?

[mkmny]

That would be a regular short.

What they are doing is naked shorting, in simple terms they are increasing supply of shares.

with kerx the float is about 40 million, well they put in an extra 14 million. that alone dilutes the pps
Now this is key there are no shares, they are selling shares to you and sending an "I O U" through the system. Hopefully they will have to cover "buy back the fake shares"  This is very rough and as simple as i can put it because there is alot more going on. anywho

Volume has kept going in the afterhours market, there is a very good chance they will have to cover.