It could be for several reasons. It could be shorts covering, or hidden accumulation made to look like shorts covering, or hedge funds acting on some inside information. To me the action is very suspicious, and when you have large positions in a small capitalized company, many false signals can be made to appear to throw off the investors.
There is no such thing as a crooked snake. However, they have a great deal of crooks in wall street, and this is the only way they can make money. Prey on the uninformed and gullible people.
How long can this nonsense continue ? You can whip a dead horse, for only so long. One of these days, the investing public will wake up and this stock will straighten out.
A large amount of positions were doubled, when the rights offering was made in 2006. For instance, Berkshire subscribed and doubled their position and so did Knauf, at the subscription price of $40. per share.
Large and present stockholders like Knauf , paid $40. per share, and doubled their stock position. Do you think, that some of these heavy holders, are going to accept such a loss, without a fight.
No stockholder has to sell at these present low numbers. It is truly a matter of patience. When USG profits pick up, then the company will warrant, a much higher selling price, but not before.
Let us not be naive. If you read the 2014 Proxy Report, you would find approx. 30 pages, devoted to how the officers of USG would be compensated, in the event of a take-over. Also and most important, it is quite obvious that all these new Amendments, that have been put in place, have been done to give BRK, the exclusive right to take-over USG.Finally, if BRK were to pay off the 2016 note, it would be the easiness way for them to increase their stock position by 14 million shares. This is just my opinion, but based on Warren's history, this is how he likes to work.
Another thing we should consider, USG has a $ 500 million note, due in 2016. BRK could pay off the note,and exchange it for a convertible note, that in turn would be convertible into common stock at $36. per share.At a $36 per share exchange, this would then be equal to 14 million shares of stock. BRK would then have a new position that would be equal to 57 million shares of USG or approx. 40% of USG's common stock outstanding.
Yes the Protective Agreement continues to protect the NOL's by holding all those from buying, more than 4.9% of USG. However,BRK still has the right to purchase up to 50% of outstanding stock at any time. Also, it states that BRK may acquire as much stock as possible, without triggering the ownership thresholds, if it makes an offer " to purchase all of the Company's common stock that remains open, for at least 60 days, subject to specified exceptions ". That's the real story.