Grey Market Trading

Connect-A-Jet (Grey market CAJT) started trading on the Grey Market this morning and, if for those of you that are unfamiliar with this venue and may own some stock, here are some things to keep in mind.

Since there are no posted quotes, your broker’s traders will have to call around to get you quotes. They may vary quite a bit from market maker to market maker and they only reflect actual bids and offers so it can change from minute to minute. If you are trying to sell, you might want to try a limit order instead of simply going with the market. Naturally, you will want to be realistic or you may never get filled.

The majority of the buyers are shorts who are covering so don’t expect a miraculous recovery and return to normalcy.  Ron Paul has a better chance of getting elected President than CAJT does of returning to the Pink Sheets. Even day traders shy away from the grey market and Serious Speculators view it with amusement but know better than to risk an investment in this purgatorial market.

If you are in the unfortunate position of still holding CAJT, realistic expectations and limit orders and a well developed sense of humor regarding your situation may help ease the pain if just a bit. Education can be expensive but worth it in the long run only if one learns from one’s mistakes. Even Serious Speculators make the occasional mistake but they always strive to improve by benefiting from the mistakes as well as profiting from the right moves.