HLL,
In doing my DD on the issue of requesting share certificates or having shares placed in safekeeping, I have been informed that in the case of QDRX, such action will NOT affect short selling. Any registered MM can sell shares without having certificates. The market makers do NOT need certificates to sell short. So any effort to squeeze the short sellers is really a waste of time.
As we all know, Quadrax has been trading consistently between .46 and .50 for a good long time now, with very high volume. The MM have been making a very predictable 10 percent every day for months. Us shareholders can call in our certificates, or have them placed in safekeeping, but the MMs will still make their money selling short until the perception of the company changes.
I am told that the only way to squeeze the shorts is when a company has a significant number of declared shorts. In the case of QDRX, there is only 26,000 short shares declared. This is obviouly nothing compared to 40 million shares.
Palermo needs to stay focused on bringing this company to profitability, not waste time on activities to thwart the natural action of the market and the players. We shareholders need to remind him to run the business, remind ourselves that the market will take care of itself, and that the market will take care of our investment if Palermo brings the company to profitability.
I don't claim to know all the in and outs of Wall Street, but my information is from someone who spent a few years working there.
Roger French |
