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Strategies & Market Trends : Shorting stocks: Broken stocks - Analysis -- Ignore unavailable to you. Want to Upgrade?

To: dumbmoney who wrote (1604)	8/5/1998 4:52:00 AM
From: Q.	Read Replies (1) \| Respond to of 2506

dumbmoney, re. <<Datek (they don't impose the $5 restriction on listed stocks). >> Thanks for the info. This stock is trading below $2. Two questions: By listed, do you mean NYSE and AMEX? What restrictions does Datek impose on these stocks? With a market cap of $20 M and a BB listing, they can't raise much cash now. Either they start producing cash from operations, which they've never done to date, or they fold. Looking at the $ 1 M cash they had in March, and the $0.7 M / Q burn rate, and the huge negative working capital, I'd say this is likely to happen sooner rather than later. Creditors have got to be worried about this one. If you can short it, you stand a chance of making a 100% profit.