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


To: Q. who wrote (2301)5/3/1999 4:42:00 AM
From: RockyBalboa  Read Replies (1) | Respond to of 2506
 
In fact, I don't remember what circumstances usually lead to a C.

When the nasdaq began to send out letters regarding non-compliance with the NM (or SC) listing standards, many seem to have complained about and in order not to hamper the chances to do an equity placement, companies were allowed to stay with an exemption.

Reasons for non-compliance have been:
-low stock price (< $1), remedy was a reverse split (mostly)
-noncompliance with NTA requirement
-in one case (EASEC) (was EASTE before), continued non-reporting due to the transient inability to value the assets of the co.

IS.



To: Q. who wrote (2301)5/4/1999 11:50:00 AM
From: mortwald  Read Replies (2) | Respond to of 2506
 
John, I have back tested your screen with prosearch 5 over the last 3 years, using a 3 month holding period with excellent results even without further specific stock research.
I did make some empirical changes which seem to improve results:

1: Add 30 day average volume at least 50000 shares.
This should help eliminate many stocks which have a bid/asked spread of > 1/4 point.
2: Stock sells at least 90% of 50 day MA.
Eliminates stocks which have just been through a severe tumble. (This did improve results significantly)
3: Short interest ratio < 5 days
Reduce "can't borrow stock" comments.

You do a remarkable job with this forum, and I'm just trying to make a contribution. Perhaps someone else will try to verify my findings.

.....................................mort