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Dec 13

SEC Suspends trading in pump and dump Makism 3D $MDDD

The stock promotion of Makism 3D Corp (MDDD) had only been going for nine days and still the SEC suspended trading in the stock today prior to the market open. Just as with Life Stem Genetics, SeekingAlpha published a negative article on MDDD by StockRealist the day prior to the suspension.

 

SEC trading suspension release
SEC trading suspension order

Just like with the suspensions of trading of Sovereign Lithium (SLCO) and Guar Global (GGBL)  the SEC highlighted potentially manipulative trading in the stock in addition to the standard concerns about adequacy of information about the company:

The Commission temporarily suspended trading in the securities of Makism3D because of
concerns regarding the accuracy and adequacy of information in the marketplace and potentially
manipulative transactions in Makism3D’s common stock.

mddd_chart

Disclaimer: I have no position in any stocks mentioned and no relationship with any parties mentioned above. This blog has a terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well.

8 comments

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  1. TraderGash

    Hi Michael,

    I have an interesting buy-in situation at Interactive Brokers. The afternoon before the halt, I got the buy-in warning and buy-in messages from IB on my MDDD short position. The next morning at 9:03, IB processed the buy-in in my account. And a few minutes later, the SEC implemented the suspension. When I look at my statements, the buy-in trade no longer appears and my IB account is still showing the short position. I have not called IB about this, and am just going to see what happens.

    Have you ever come across this situation before?

    Best wishes.

    Gavin

    1. Michael Goode

      On the day that IB is going to do a buy-in that it warned you about the previous day it will show the buy-in in premarket and remove the shares from your account but the buy-in will be at the VWAP and will not even start until after the market open. So you did not get bought in and should profit nicely when it reopens for trading.

  2. TraderGash

    Thanks, Michael. That’s what I had assumed was happening. $20 went into the local kettle!

  3. Robert Owen

    Is it to late to purchase MDDD? Newsmax says that it should sky rocket in 2014, how can i get some stock and where.

    1. Michael Goode

      I sure hope that you are being sarcastic, because if you do really want to buy MDDD … God help you.

      1. RM

        Presumably, he has been watching Wolf on Wall Street :

      2. Susan Fleming

        Not sure what you mean by….If you really do want to buy MDDD…..God help you…….Isn’t is eventually going to come back to be able to trade??

        Thanks,
        Susan

      3. Michael Goode

        Once a stock is suspended by the SEC it loses compliance with some rule because it is not quoted for a period of a few days. I forget the rule. But after that happens market makers cannot make a market in the stock until one market maker vouches for the company, which none will ever do on a company that got suspended by the SEC. So the stock will almost certainly stay on the grey market forever and will never have much liquidity. It will likely never be able to raise more money because penny stock financiers won’t want shares of a gray market stock. In other words, the company essentially becomes a zombie. http://www.otcmarkets.com/learn/otc-market-tiers

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