Disconnect between A and B stock evidences a problem.
It shows that you can't trust the rally. SMART investors would be buying the A stock, and selling the B stock. Why is ANYONE buying the B stock at $4.00+, when they can buy the A stock at $1.40.
Unfortunately, my broker can't find any B stock to short right now. But I just bought 5000 shares of A stock today, at $1.41, with the intention of finding 5000 shares of B to short, soon (hopefully), and locking in on an almost guaranteed arbitrage profit.
Historically, the A and B trade MUCH closer to each other. One thing is for sure: Either the A is dramatically undervalued...or the B is dramatically overvalued.
Ho hum! This whole thing is funny. They need to start closing under-performing stores now, but their ego's won't let them. Been there, done that, at Monkey Wards. Kept telling those boys (and girls) what they needed to do in Chicago, but they did'nt listen. Who cares, walked with a bundle of cash anyway.
Yes, I too have been scratching my head recently over this recently occurring discrepancy. I don't get why the A and B shares are diverging from their historical parity all of a sudden. However, it has always seemed to me that the B shares were inherently more valuable due to the voting rights issue. Why would anyone prefer a non-voting (eg."A") share over a voting (B) share? Of course if there are no dividends to be had and insiders still control SPCH in totality it probably doesn't matter anyway.
Careful there, the B stock is controlled by the founding family and the current management with over 50% ownership of the shares in B. So while the stock is still traded they can still outvote all the other shareholders at anytime. There is no reason for this stock to be going up, unless the public is not being told everything. They are still losing money and refuse to shut poor performing stores.