Quarterdeck Corporation Nasdaq: QDEK
13160 Mindanao Way
Marina del Rey, CA 90292-9705
The Fool Portfolio sold short 890 shares of Quarterdeck (NASDAQ:QDEK) at an average price of $7.08 on September 27, 1996. The graph above reflects QDEK's performance in relation to the Fool's short point.
On December 3, 1996, the Fool Portfolio swooped down on its 38th trade as it covered its buzzardly short position in Quarterdeck Corp. (Nasdaq: QDEK). The Fool Port had not featured a short stock since Paychex in March of 1995. Thankfully, Quarterdeck performed much better than that ill-fated short. Quarterdeck earned the Fool a 21.78% return in little over two months, even while the market soared to great heights.
Quarterdeck continued to struggle during the time period, announced poor year-end earnings, had not had a CEO in place, and was slapped with a shareholder lawsuit the very day the Fool covered (the cover report had been issued four trading days prior). So, why cover at all? The cover report handles that topic well. In short, though (no pun intended) the goal of a 20% return on this dastardly short was attained, and so the Fool thought best not to be greedy, but instead to cover. How Foolish of us.
ACTION # STOCK PRICE COMS'N COST Covered 890 QDEK $5 1/2 $36.50 $4931.50
Gain on transaction: 21.78%