January 15, 2002

MandrakeSoft stock scores a spot in U.S. OTC market

Author: JT Smith

- by Tina Gasperson -
Linux distribution company MandrakeSoft stock has hit the over-the-counter (OTC) market in the United States,
according to a community newsletter released by the company January 15,
2002. MandrakeSoft CEO Jacques Le Marois is pleased.The stock trades under the ticker symbol MDKFF, and as of the market close
January 15, was selling at $4.13 USD. MandrakeSoft hopes that the
listing will increase investor trading in the stock, which Mandrake initially issued on the Marché Libre, a Paris-based
over-the-counter market. Apparently the Linux distribution company is not
completely satisfied with its performance. The price is hovering at about 4.50EUR, or $3.99 USD, on the Marché Libre.

"With its stock now
being
traded on the U.S. OTC market, MandrakeSoft effectively becomes a
full-fledged participant in the largest and most active financial
center
worldwide," the newsletter states.

Le Marois calls the listing good news. "We wanted
to involve the United States user community, but we discovered it was
very, very difficult for Americans to access the Marché Libre system,"
says Le Marois. "They cannot use Ameritrade or e*trade, and the European
system is very complicated [for traders who don't live in Europe]."

With the listing on the American market, it is now very easy to access
the stocks, get a quote, and place orders, which Le Marois hopes will
mean more trading activity for his company. "When you don't have enough
trading going on, any movement can depress the stock price." With
increased volume, says Le Marois, the stock price will more accurately
reflect the state of the company, instead of knee-jerk reactions to
small buy-and-sell orders. "We will now create a 'virtuous' circle --
more investor trading will cause the stock volume to increase," and any rise
in stock price should in turn trigger more investing, he says.

Le Marois says that MandrakeSoft may eventually be listed on bigger
markets like the NASDAQ, but that's for the future. "It costs a lot of
money to be listed," he says. "It takes a lot of time and money."
Besides that, MandrakeSoft does not yet meet the qualifications
for listing on NASDAQ
, which include pre-tax income of $1 million,
and at least 400 shareholders. Company officials are looking for
MandrakeSoft's pink sheet status to bolster the company's prospects
enough to help it meet the NASDAQ qualifications sooner.

Pick up stock quotes for MandrakeSoft at Nasdaq.com.

Category:

  • Open Source
Click Here!