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Article Excerpt M2 PRESSWIRE-31 March 2009-BUYINS.NET: Market Maker Surveillance Report. Top 6 Abnormal Price Friction Stocks For March 30, 2009(C)1994-2009 M2 COMMUNICATIONS LTD
RDATE:31032009
BUYINS.NET, www.buyins.net, announced today its proprietary Market Maker Friction Factor Report for March 30, 2009. Since late October market makers are now required to be on the bid as much as they are on the offer and for like amounts of stock. This "fair market making" requirement is designed to prevent market makers from manipulating stock prices. On Monday there were 3,075 companies with "abnormal" market making, 1,245 companies with positive Friction Factors and 4,874 companies with negative Friction Factors. Here is a list of the top 6 companies with the Abnormal Price Friction (unfair market) in their stock prices. This means that there was more buying than selling in the stocks and their stock prices dropped. Bunge (NYSE: BG), Granite Construction (NYSE: GVA), Torchmark Corp (NYSE: TMK), Precision Castparts (NYSE: PCP), Gorman-Rupp (NYSE: GRC) and Layne Christensen (NASDAQ: LAYN). To access Friction Factor, Naked Short Data and SqueezeTrigger Prices on all stocks please visit http://www.buyins.net.
Market Maker Friction Factor is shown in the chart below:
Symbol Change % BuyVol Buy% SellVol Sell% NetVol Friction
BG -$4.00 -6.77% 864,225 43.06% 740,223 36.89% 124,002 abnormal
GVA -$3.71 -9.07% 401,583 37.70% 390,649 36.67% 10,934 abnormal
TMK -$3.62 -12.55% 1,166,959 37.45% 1,125,038 36.11% 41,921 abnormal
PCP -$3.50 -5.54% 638,334 36.78% 621,837 35.83% 16,497 abnormal
GRC -$3.18 -13.98% 183,382 52.08% 96,407 27.38% 86,975 abnormal
LAYN -$2.85 -14.67% 468,190 56.32% 354,147 42.60% 114,043 abnormal
Click here to view chart: http://www.buyins.com/ff/ffabnl3-30-09.jpg
Analysis of the Friction Factor chart above shows that each of the six stocks mentioned above had more buying than selling on Monday and their stock prices dropped. The Friction Factor displays how many more shares of buying than selling are required to move a stock higher by one cent or how many more shares of selling than buying moves a stock lower by 1 cent.
For example, the chart above shows BG with 124,002 greater shares of buying than selling (NetVol) and the stock price was down -$4.00. This means the Market Makers were trading the stock in a way inconsistent with normal supply and demand (Economics 101); more buying than selling should cause prices to rise.
Bunge Limited (NYSE: BG) engages in the agriculture and food business worldwide. It operates in three divisions: Agribusiness, Fertilizer, and Food Products. The Agribusiness division purchases, stores, transports, processes, and sells agricultural commodities, including grains and oilseeds, such as soybeans, rapeseed or canola, sunflower seeds, wheat, and corn; and commodity products. It sells...
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