Effective June 2, SinkHole is being replaced in the S&P Small Cap 600. This means that the funds that mimic this index will have to sell out their positions, putting downward pressure on the stock.
johnpjacobs, johnpjacobs, johnpjacobs, johnpjacobs!!
And how is YOUR portfolio doing with this POS in it!
They basically have to be hiring, or else they could be forced to give back grant money that the state gave them as an incentive to move there. While they still have time to reach the target, fact remains that there is a target and one can wonder if the hiring will outpace revenue growth, squeezing margins.
On the contrary, the loss of a small, failing insurer that has been aggressive in the marketplace would be universally cheered by the rest of the industry!
NASDAQ tells us the following about institutional holders as of 3/31 and Q! activity:
149 institutions held 37.4 million shares of this turd. The must be ecstatic.
23 institutions initiated new positions totaling 9.8 million shares. They must be wondering why.
49 institutions increased their positions, adding 12.9 million shares. Ditto.
78 institutions decreased their positions, selling 17.3 million shares. They are wondering why they did not sell more.
35 institutions blew out their holding completely, selling 10.7 million shares. Probably wished they did it sooner. A lot sooner.
I see one new institution on the Yahoo list -- Kingstown Capital in NYC opened a new position totaling 4,950,000 shares. Fortunately for them and their investors, this is one of their smaller positions. They are a smallish outfit with less than $1 billion of assets under management, describing themselves as value-oriented with a focus on special situations. In this case, they completely misunderstood what "value" means in the insurance industry and they must now believe that the situation was not so special.
We also see that Morgan Stanley added 1.5 million shares, increasing its holdings by 242%, pyramiding its losses (Oh, excuse me -- people seem to call this "averaging down"). Now THERE is a firm that should have known better, as it is an asset manager that at least has the reputation of being a cluster of very smart folks...
NASDAQ gives us the following information on institutional ownership of this turd as of the end of Q1 and the activity during the quarter:
21 institutions hold the stock, with a total of 4.2 million shares.
3 institutions initiated new positions, purchasing 91,818 shares. They must be happy today...
8 institutions increased their positions, buying 712,583 shares. Them too...
7 institutions decreased their positions, selling more than 1.1 million shares. Probably wondered why they did not sell more.
3 institutions blew out their position entirely, 496,722 shares
My previous information on Blair was apparently incorrect, although I got it directly from the firm;s 13F filings Apparently they only sold 600,000 sharesx
Actually, Boo-Fay-Sucker-Upper, Merkle is indeed something of an analyst. Read his bio. And if you wish to refer to him as merely a blogger, let it be known that he blogs with a better understanding of the facts and with a better research discipline than you, by a long shot.
Well now that you mention it, the SinkHole reported today that it anticipates filing within 30 days, this in response to the listing requirements failure that NASDAQ notified them of. I'm sure we can look forward to seeing it by the end of July. Maybe.
In its Form 8 filing describing its summary dismissal of accountants PWC, SinkHole disclosed the following:
"The Audit Committee has discussed the material weaknesses in its internal control over financial reporting with PwC and has authorized PwC to respond fully to the inquiries of BDO USA, LLP (“BDO”) concerning such material weaknesses."
PWC was instructed by SinkHole to write a letter to the SEC stating that it agreed with the statements made by SinkHole in the Form 8 filing. PWC's letter stated:
"We agree with the statements concerning our Firm in such Form 8-K except with respect to the date of our dismissal. When we were informed of the auditor change on May 5, 2014, we were not informed that our dismissal was subject to any subsequent action by the Company."
Does this not suggest that PWC was unaware that it is expected to educate BDO on the material weaknesses in SinkHole's financial reporting capabilities? Will we now have to wait for another eternity before the already late Form 10-Q filing for Q1-14 pops up on the SEC's website? Anyone got any answers?
Anyone? Anyone? Blue-Bird-Boo-Fay?