Well, the bids were supposed to be in yesterday and that's when the selloff began. I suspect that the bids disappointed and that this information has leaked out into the market. These kinds of leaks are not uncommon. For example, look at what happened to TVIX on March 22. Then after the close the bad news came out.
I agree with you that bids were supposed to be in yesterday (4/2), and while it's certainly possible that bids came in low and somehow that leaked out, I think that scenario is unlikely for the following reason: at $2.85/share, PRXI's market cap is about $135.6 million, which is considerably below the $190 million or so that the artifacts and other stuff were appraised at a few years ago. Presumably PRXI has established a reserve amount at $190 million or above, to make sure that the Titanic does not sell for less than that.
So the sell off continues? Any thoughts on why such large volume selling on what is expected to be the eve of such a major announcement? Is it because an insider sold right before major news? doubtful. At any rate, since its "new" high, this stock has sold off hard on big volume. Doesn't bode well for those expect some major valuation bump! Good luck all.
Highly unlikely that the insider who sold had any knowledge of the bids coming in, since if he had such knowledge, it would big a BIG NO NO to buy/sell the stock. I mean, that would be one of the most obvious trades on inside information ever and you'd get the book thrown at you immediately.
I find it interesting you call it a SELL OFF. the stock was $2.45 on March 1st when it opened that day. SO..lets see..its UP 45%!! since that day, is it not? that is after being stuck at $1.50-1.90 for almost a year before that. SO maybe if SOMEONE bought some at those prices they sold some? does it mean anything? Greed isnt good, but common sense is. All of us that bought/own this for a reason..the outcome, will wait it out, I would suspect. Traders do what they do, the stock has acted amazingly well lately, including the crazy run up mid last week and is still up tons. So..what does it all mean? But to call this a "SELLOFF" is kind of silly.
My understanding was the bids were due by Apr. 2 and they were targeting April 15 (the 100th anniversary of the sinking) to announce the winning bid. Of course if the court has to approve things there could be a delay. I don't know for certain there will be a special distribution. I don't think that is required but sure would be nice.
Does anyone know why Doug Banker, a director of PRXI sold 15,901 shares on Wednesday for $3.50?
Seems odd that an insider would sell right before bids are due and the price could go up in two weeks.
Good luck to all.
I noticed that too, but when you search SEC Form 4 filings (summary at http://www.gurufocus.com/StockBuy.php?symbol=PRXI), you'll notice that Doug Banker has been selling from 2010 to present. He hasn't had great timing in terms of his other sells (range of 1.50's to 1.99) so he might not be a great yardstick to measure by. Remember, there could be a number of reasons why someone would sell (needing cash, mortgage payment, school tuition for kids, etc etc.) but there is only one reason why someone would buy.
I'd be more concerned if Mark Sellers or if Chris Davino (old CEO of PRXI and the current president of the subsidiary RMS Titanic) was selling shares.