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

To: Daniel Chisholm who wrote (1813)	9/18/1998 4:14:00 AM
From: Q.	Read Replies (2) \| Respond to of 2506

Daniel, PNDA's market cap has fallen so low that it will be impossible for them to raise enough equity to sustain their cash burn. PNDA's market cap is now only $3.4 M, and I can't imagine that the convertible owners could extract more than the market cap from the equity market by dumping new shares on the market. It doesn't matter whether they dilute the stock 20% or 20 million percent. So it doesn't really matter any more what the exchange's rules might be. BTW, if I were short PNDA, I think I would consider covering now at 1/4, because this stock seems destined to become untradeable, and depending on your broker, you might have trouble covering your short then. I've read recently about one short seller who resorted to advertising in newsgroups to find somebody to give him some shares in an untraded worthless stock so he could close his position. It was a big hassle for him. Unfortunately, however, I am not faced with this problem with PNDA. I covered much too early. Final stages of death spiral? .... Yes.