re. OCOMD, I'm pondering an exit strategy for my short.
At $4 this stock is in a sort of purgatory, awaiting a judgment that can have only two possible outcomes ...
If the stock price continues to slide, then the secondary will be cancelled by Southeast Research Partners, the co. will get no cash, the stock will be damned for eternity, and I cover at zero.
If the price bounces back up, then the co. gets the cash and an afterlife, and I lose my paper profit.
I just wish I knew at exactly what price Southeast would pull the plug. The info I have is from calling the co.'s IR a couple of weeks ago. Referring to their statements in the filings, which said that Southeast's secondary is contingent on several factors, I asked them what they meant, specifically. I was told that the main requirement is that Southeast wanted a stock price around $7 to attract buyers, and a secondary factor is whether any news developed, for example, concerning competitors products. The latter doesn't sound like a factor now. Just the stock price.
This is such an interesting situation, where technical and fundamental analysis are the same: there is only fundamental thing at play, and that is the stock price.
I could cover now at a 16% profit net of trading costs, or I can take a chance. What to do ... |
