Still wondering about who bought the more than 25 million shares of HRTP3 in about 2-hours--between 2 - 4 PM--on Friday afternoon, May 10, 2013, right after Mello announced he resigned as CEO, I checked the Ownership Breakdown shown at HRT's website.
You may recall that HRTP3 spiked up from an Opening of R$4.14 to Close at R$4.60. Total Volume on the day was 29.49 million. Oiljars51 posted, at the time, that he saw numerous 25K - 50K blocks being traded between 2 and 4 PM. Simultaneously, HRTPY's price spiked up at the same time, from $1.03 to $1.20. Trading in it stopped 2 or 3 minutes before 4 PM, and only 100 shares traded in the After Hours session, Down 1 cent. When the Buyer stopped, just before 4 PM, the price also dropped 2-cents to $1.18.
It indicates that whoever was buying at the BM&FBOVESPA and at the NASDAQ PK was done for the day just before 4 PM. I also believe that the Buyers were connected in some way, and likely involved only a few
entities. I also believe that the Buy was arranged beforehand, at least on the Bovespa, to have so many shares available with a sort-of-ceiling, of R$4.60. I believe the whole thing was planned, orchestrated, and was to be triggered by either voting Mello out of his control of HRT, or forcing him to resign.
In other words, the Buyers knew this was going to happen and approximately when. We know from news releases on April 5 that this was a plan of Southeastern Asset, and Discovery Capital Mgt., the 2-largest shareholders listed for HRTP3. The proxy vote was held at the Annual Shareholders Meeting on April 29.
On June 10, a news release explained that, pursuant to Article 12 of CVM Instruction No. 358/02, that, on June 07, 2013, it received a letter from the Putnam Investments, LLC Group, informing HRT about its material
acquisition of common shares of HRTP3 totaling 16,104,653 shares (5.42%), composed of 14,541,926 shares of HRTP3 and 1,562,727 which can be converted from 3,125,455 GDS's of HRP.V.
I'm at the point that I'm hoping this outfit can keep on floating without going completely going under. I would welcome any good news, because this one time jewel has turned into a dog. I'd be a lot better off if I had never heard of HRTPY. But I made the choice to invest my hard earned money and I am responsible for my greed and thinking this was a ticket to new riches. A sucker is born every minute and I'm one of them in this HRTPY scheme. My hope for this dog is down to one little cinder. I'm still holding on, because I don't much of a choice at this point.
This is B
Just prior to that announcement, the following was the breakdown of Ownership of HRTP3:
Southeastern Asset: 38,963,300 (13.15%)
Discovery Capital: 18,120,400 (6.12%)
Others: 239,174,589 (80.73%)
Total: 296,258,289 (100.0%)
Today, the following is the breakdown of Ownership of HRTP3, including all changes since Putnam was added:
Southeastern Asset: 38,358,950 (12.90%) = -604,350 sh.
Discovery Capital: 28,615,697 (9.62%) = +10,495,297 sh.
Putnam Invst Group: 16,104,653 (5.42%) = Same
Others: 214,383,279 (72.06%) = -24,791,310 sh.
Total: 297,462,579 (100.0%) = +1,204,290
The 2 worrisome things we see are that we now have Putnam with over 16 million shares and Discovery now has close to 29 million shares, and with Southeastern (despite its 600K loss), the 3 hedgies control 83,079,300 shares of HRTP3, or about 27.94%.
The interesting thing is that Putnam’s purchase, and Discovery’s increase, totals 26,599,950 shares, which fits nicely into the more than 25 million shares bought on May 10, in those 2 hours, out of the 29.49 Million Total shares traded that day! Especially if we discount those 1,562,727 potential shares by converting their 3,125,455 HRP.V GDS’s. That would total 25,037,223... which fits in even nicer into May 10’s 2-hr splurge! In their announcement, Putnam said they owned those shares since May 21. They definitely began buying AFTER Mello resigned, earlier on May 10. They bought for 2 hrs, and then on 7 more business days, including Tuesday, May 21. That’s over 14 million shares bought in not-quite 8 business days!
HRTPY hit our recent high on May 10, $1.20, and HRTP3, hit R$4.60. The very next trading day, Monday, May 13, both share prices plunged, and continued downward well into June so that 1 month later, on June 10, HRTPY was in the low 50 cent range, and HRTP3 Closed at R$2.17...
Cont. at C
This is C
...both stocks had dropped more than 50% since May 10. How can someone Buy over 14 million shares of HRTP3 in 8 days, or less, at lower and lower prices? They evidently bought most of them in the 2 hours on May 10. When you include Discovery with their 10+ Million shares, the price should have been skyrocketing. There’s been a lot of funny-stuff going on, in the background! This is the way hedge funds operate, as well as all others who are involved with them--like private funds!
Not disclosed in the Ownership breakdown are other hedge and private funds who bought in BEFORE HRT went public on Monday, October 25, 2010--Michael Dell: 12.46%; Highfields Capital: 8.86%; Xerion Fund, Passport Capital, and Libra Fund: each 5.54%. These 5, added to the other 3, totals 65.88%. If these funds still have their holdings, that means the normal HRTP3 shareholders (the REAL “Others”), only have 34.12%, or 101.49 M shares... barely 1/3, while the hedgies group has 2/3 and about 196 Million shares. According to Mello, back then: “About a year ago, we conducted a private placement and over 60 foreign investors became partners of HRT.” So, there must be even a lot less, in the group of “common” shareholders.
Some of you gullible shareholders think it is a good sign that Putnam and Discovery are buying so many shares and Southeastern is putting their 38 million shares in with them. It equates to being ecstatic at leasing out your basement to Count Dracula, for the rental income it should provide... only, before you can spend a dime of it, all of your blood, hopes, plans, and life have been sucked out of you. If you don’t sleep in a coffin and pal around with wolves and bats, by the next day, you’ll be locked-up in an insane asylum giggling away, eating bugs and cowering to your new Master on the nights that he flitters in and out to visit you to pay you a cruddy greenish penny for his rent!
Cont. at D