3SOF

got in at 50 cents, enjoying my quick 16%, but wondering how far this is going to go. Any opinions? I'm worried about resistance at 61/62 cents. It would be helpful if someone could chart this one out. thanks

I have been watching MBAH for over a year, having been in for the run a year ago. Some answers to a few of the questions that have been posed on this board:

No one really trades MBAH outside the normal trading hours. There were a few hundred thousand shares that were bought at the ask today towards the close-the MM's shifted up, and the buyer chased the ask up to 5.7 cents. However, the MM who has been sitting on the bid most of the day, NITE, did not follow the ask. If I remember correctly, the B/A at close was 54/57, but NITE shifted down to 5.1 shortly after close. NITE has been buying blocks at the bid for a couple of weeks, and has been willing to make the seller chase the bid, provided other MM's stay out of the way. So that explains the B/A spread a/h. Tomorrow I expect MM's to start the day at 54/55 or so, unless many buy orders are placed prior to the market opening.

During the last run, there was a large trading group pumping the stock into high heaven. The fellows convinced a bunch of naive investors to order stock certificates in order to cut down MM shorting, among other tactics used by the trading group to prop up the price as their shares were dumped. A lot of the dumping occurred around the date of the dividend, so the price sagged from there as the trading group dumped and stopped pumping.
Many have speculated there have been large short positions over the past few months that precipitated the drop seen over said time period. Perhaps management has heard shareholder concerns and decided to act on them. Personally, I believe any short positions were covered at the triple bottom. However, it appears less gimmicky as it falls in the same time period of the last dividend, so it may simply be a continuation of a yearly tradition-no harm in that.

EliteG: Yes, the market cap = #of shares*price/per share. However, the net increase in shares is only .5%, so there should not be a fundamental change of note to accommodate the increase in shares, given the stock's pattern of +/-10% swings during a given trading day.  Also, I believe that big investors made their bets during the last few months. If you've been watching the stock minute-to-minute, you have seen how tightly shares are held down, given the large increases in price on any buying interest.

I would appreciate hearing your thoughts on your plans of trading MBAH. If this run is anything like last year's, I would not be able to trade it. I use ameritrade and have to wait 5 days per flip. Last year, every consolidation period during the mega-run lasted, at most, 3 days.