Quadrant4 Systems, Inc. (OTCMKTS:QFOR) Enters Short-Selling Zone
Quadrant4 Systems, Inc. (OTCMKTS:QFOR) has had minor retreats before, but the last few days are making a worrying pattern, threatening to topple the shares from their peak. QFOR slid down by more than 23% on Thursday, sliding to 96 cents on selling volumes above $1.14 million.
Recently, QFOR announced it had selected VoltDB to operate its database problems for organizing health care payments. But the message did not have an outright effect on stock prices, as the correction had already began. The latest promotional email for QFOR is already quite old, from November 18th.
QFOR may have all the best intentions on its payment processing business, but in the shorter term, the dollar levels proved a slippery position, and combined with the fallout of the promotion, the ticker will see downward pressure in the next few days. Investors’ forums still expect that the company would manage to keep its levels, only if it continues with robust updates on its business development.
Investors’ forums are already aware that the chances of QFOR are evaporating fast, and there are expectations that a fall of 50% is a real possibility. There is also talk that QFOR has entered the phase when short-sellers start loading up and preparing for a further fallout. On the other hand, there are wild longer-term predictions, seeing QFOR as a promising electronic service company that may one day easily touch $5.
Virtual Piggy, Inc. (OTCBB:VPIG), a ticker seen as a safer bet with much promise, is also threatening to sink below the dollar levels, making a significant downward trend. Currently, VPIG hangs around the $1.05 levels.
DubLi, Inc. (OTCMKTS:DUBL) still does not move from its 8-cent positions, despite the promising jump in October. The company offers a less original online system for consumer good payments.
QFOR may show development in 2014 as it adds more customers, yet the timing of those events may be way past the almost inevitable fallout. We will be tracking QFOR to see how deep it is pushed by short-selling. In any case, QFOR may try a rebounce, but our experience in promoted stocks shows they are generally defunct once the pumpers give up and move on to the next selection.
Red Chip Companies, Inc., the promoter devoted to higher-quality tickers, has had two new selections since QFOR, a sure indicator that it has moved on. Both new tickers command a high price, but there are no significant movements, as it is usual for lower-tier, underpriced shares.
QFOR had the right mix of a low position and a robust publicity push, so that it behaved more like a speculative bet. Now, it is a matter of choosing the right timing, to avoid falling through the cracks of short-term corrections.