Mickie - here are some key filings to watch for on QDRX. Glenn, too.
You correctly noted that the 10Q & 10K are very important because they contain a lot information that is too detailed for the quarterly earnings press release and the shareholder annual report (respectively) but these details must still be filed with the SEC.
In the case of QDRX, which is having cash flow problems as it tries to build manufacturing facilities for the shaft, the main filings to watch for are:
S-3: a registration of new shares. Note that QDRX has been authorized by the shareholders to issue up to 90,000,000 shares but so far has issued just under 30,000,000. That doesn't mean they can just sell 60,000,000 shares anytime they want because they have to file an S-3 first.
8-K: a notice of unscheduled major events like an acquisition or merger or any really important financial stuff that will effect all of the shareholders in a serious way.
13-D: filings by insiders who own 'beneficial shares' like the Board of Directors, and top management like Palermo or Stoltenburg. These folks have to file by the tenth day of the next month after they either buy or sell shares. In fact, watch for any form with a '13' in it, not just the '13-D' all of this series is for insiders reporting their holdings.
These are the major ones - fortunately the primary list is pretty short. Just remember: 3,8,10,13.
Glenn, I have been reading the latest SEC filings and they indicate that the company has been paying its normal operating bills with newly issued shares. I think that has caused a lot of the recent extra selling pressure since these are mostly other businesses that need cash to operate. But we are past the end of November now so maybe we will get some relief from that source. We also are in the time of the year that tax loss selling is upon us - and no doubt some folks have been selling in order to lock up a loss. The tax selling will typically begin to abate soon, if it hasn't already - because of the '30 day wash sale rule' that would keep the tax loss sellers out of QDRX until after the first of the year - when many NASDAQ stocks are known to rebound.
We need to be a little concerned that on Dec 15, Lion Golf's credit line with their bank is going to expire - so something will have to be done about the approximately $750K in loans that Lion has outstanding. But we do have assurances from the company that shaft production will commence in Q4 so we can infer that by the time Dec 15 rolls around the company will be in an improving financial position, revenue-wise.
At the moment, the selling has apparently eased off and the buyers have the upper hand. All-in-all, I think we have a reasonable basis to anticipate improving prospects and better days for the company and the stock.
Kind regards to all,
Richard |
