RE: Shorting Quigley
Since Quigley does have a product in high demand which is only beginning to be noticed by the public I would definitely not short the stock now. In the next month or so several much anticipated events will occur. (1) COLD-EEZE will receive considerable exposure on the national TV news shows and magazines. (2) Quigley will split its shares (to take place within the week) and possibly announce another 2-1 split. (3) Quigley will list on the Nasdaq. (4) Quigley will officially announce Fall, 96 earnings (expected to be 30 cents) and will forecast earnings for the current quarter (speculated to be $1.00 or more).
The anticipation of these events, and their fulfillment, will drive Quigley to very high levels. My gut feeling is that at some point in the next few months it will be obvious to the intelligent investor that Quigley has outrun even the most generous earnings predictions. At this point, the masses will try to short the stock, only to panic in a short squeeze that will drive the stock up even higher. Finally, after Quigley has reached some astronomical valuation, the longs will cash out, the COLD-EEZE story will sour, and the stock will drop like a rock. And, true to form, the small investor won't be able to profit since it will be impossible to find shares available to short. Such was my experience with Zitel...
I personally think Quigley will be the Iomega of 97. Basically a fundamentally sound, one product, company that gets hyped to the extreme by speculating bears and bulls.
Just be careful |
