Here's a neat toy for anyone interested. The nasdaqtrader site allows you to search for stocks which are UPC 11830 restricted.
Here's what this means:
A security becomes restricted pursuant to UPC 11830 when the total
number of shares that market participants have failed to deliver in that security
exceeds 0.5% of the total shares outstanding. In practice, securities with large
fail-to-deliver positions are difficult to borrow.
This basically means that further shorting is difficult, if not impossible, and a squeeze is at least a vague possibility. (But my advice is never, ever even think of waiting for a squeeze to bail you out of a real loser - it won't happen. On seeing "let's all call in our certificates" any sensible long runs for the hills).
Here are the current NASDAQ index biotechs which have UPC 11830's:
AQLA Aquila Biopharmaceuticals, Inc.
ARIA ARIAD Pharmaceuticals, Inc.
CLTR Coulter Pharmaceutical, Inc.
GLIA Gliatech Inc.
SCLN SciClone
ZONA Zonagen, Inc.
(I personally own the first four of these).
AQLA is a surprise - pretty thinly traded, no convertible, hadn't heard of shorting buzz. I own a little, bought at around 1 1/2 because I felt the stock was just too beaten down, and they actually have a reasonable shot at some real success with their cow mastitis vaccine. (A high-risk stock, of course).
ARIAD is no surprise at all - one group of preferred holders shorted and have been refused conversion.
CLTR and GLIA aren't unexpected. Shorts could get into big trouble on both of these real easily. I have good-sized (for me) positions in both.
SCLN and ZONA are standard popular shorts.
Search site is:
nasdaqtrader.com
Peter |
