Penny Stock Market Makers: Who To Watch Out For

The “Three C’s”: Citadel Securities (CDEL), Canaccord Genuity (CSTI) and Cantor Fitzgerald (CANT) are friendly for the most part. Although, sometimes clearing houses will route through one of them because they know us traders love the C (non sexual).

For Rookies: Countless “Ask Slaps” at that 10,000 do nothing as the count remains 10,000 due to a very deep well of securities to sell.  WDCO, STXG and GLED are brokerage houses which will take share certificates and clear them for low level toxic dilutors. This does not mean company dilution. Most of the time it is either a former investor in the company that was issued countless shares from the company in certificate form.

PUMA (Barf) will always be doing his/her thing by either accumulating ahead of a solid move, or a short covering before a possible move to the upside.  Either way, this battle can last weeks and makes seeing them atop the bid/ask of a ticker one you will only want to enter into if it’s understood you could be there for awhile. Many thing its always dilution, but in many cases, it is not.

CFGN, is like brushing your teeth, then eating an orange. CFGN = A horrible day

Contrary to popular opinion, market makers don’t really have a license to print money like many try to insinuate.   They get their $1,000,000 fines every other year from the SEC for jumping bids although they are required to buy and sell at bid and ask prices.  Despite having the ability to hedge by short selling and swap agreements (which come across the screen as T-Trades or show “avg.” after it), both of which many individual investors see as “market manipulation,” they create the market for the little or no trading volume stocks.

VFIN: A great deal of confusion I noticed is around VFinance (VFIN). It does not mean company dilution in all cases. Sometimes a certificate clearing house such a Wilson Davis will execute something called XCLEAR, and the remaining shares will be routed through VFIN. This has nothing to do with the company of the underlying security. However, in a lot of cases, this is a clear sign of the company diluting. It takes more than an automatic assumption to release if the appearance of VFIN means company dilution, or certificates clearing.

Understanding what MM’s are all about in the Penny Stock world, and you will not have to reply on cheer leaders making assumptions on why the stock is failing.

EDIT: ARCA is technically not a market maker but rather a NYSE exchange partner that completes trades for a fee. Usually pre-arranged. NYSE Arca appoints Lead Market Makers (LMMs) for ETPs (Exchange Traded Products) with a primary listing on the exchange to meet defined obligations in exchange for incentives such as lower transaction fees. In any case, ARCA can ruin a run, or hide a great deal of shares on either side.

Market Makers To Watch Out For:

Alternative Execution Group AEXG
Maxim Group LLC MAXM ⚠ ⚠ ⚠ ⚠💩
Puma Capital, LLC PUMA
Vandham Securities Corp. VNDM ⚠⚠
BTIG, LLC BTIG
Vfinance Investments, Inc VFIN ⚠ ⚠
The Vertical Trading Group, LLC VERT
Buckman, Buckman & Reid, Inc. BKRT
BMA Securities BMAK ⚠ ⚠ ☠️
GMP Securities, LLC MITR
INTL FCSTONE FINANCIAL INC INTL
R. F. Lafferty & Co., Inc. LAFC
Ascendiant Capital Markets, LLC ASCM
Delaney Equity Group LLC DLNY
Wall Street Access WABR
Spartan Securities Group, Ltd. MICA
Biltmore International Corporation BMIC ⚠ 💩
Wilson-Davis & Co., Inc. WDCO
DINOSAUR FINANCIAL GROUP, L.L.C DINO
D.A. Davidson & Co. DADA
Keefe, Bruyette & Woods, Inc. KBWI
Tradition Asiel Securities Inc. TRAS
Raymond James & Associates, Inc. RAJA
MONROE FINANCIAL PARTNERS, INC. MONR
Fig Partners, LLC BNKS
T.R. Winston & Company, LLC TRWN
Stockcross Financial Services, Inc. STXG
Rafferty Capital Markets, LLC RAFF
Stifel, Nicolaus & Company, Incorporated STFL
Wedbush Securities Inc. WEDB
Glendale Securities, Inc. GLED
Alpine Securities Corporation ALPS
CRT Capital Group LLC CRTC

 

 

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