I'm with a firm that clears through U.S. Clearing, which is owned by Quick & Reilly. They are huge, and I've never had trouble shorting obscure stocks before, even when others were complaining about being unable to do so. Thus, I was surprised to receive the call on WDRY.
I hope it doesn't happen on other stocks, especially when I'm deep underwater. That would be a cute way of killing all short-sellers, force us to return borrowed shares with the market at an all-time high. (Of course, if it happened across the board, then we could start a class action against the brokerages and clearing houses involved.)
I covered yesterday at 23 1/16, and today WDRY closed at 22 5/8. That's not good. (Actually, I just covered as soon as the broker called me, and I've heard of many people who just ignore the broker's phone calls, and get to keep the stock. It's possible that they request a call in of ten times as many shares as they need, because they know that some people will ignore them.) But according to my prediction, the stock will continue dropping every day now. |
