On 06/25/2015, Moduslink sold yet another 29,654 Medifast shares at an average price of $33.0317. That still leaves them with 1,194,891 MED shares. I calculate this sale at around $980K. Taken along with the other MED sales, it does begin to look as if they are exiting their MED position. It appears that they've set the $33 mark as a target, again, that's around $4/share more than they paid for their stake in MED. IF MLNK is looking to exit their entire MED position, they will probably need to sell several smaller amounts over several days in order not to depress the share price. Due to the selloff today in the overall market, the MED share price failed to reach $33, so we'll see if MLNK holds off on further sales.
Yesterday, 06/23/2015, MLNK sold 27,443 MED shares @ an average price of $33.0112. I think that amounts to around $900K. MLNK still has 1,224,545 MED shares. Yesterday's sale amounted to around 2% of their holdings.
In a filing tonight, MLNK is reporting that they sold 5,687 MED shares @ $33 per share on 06/19/2015
and 3,807 MED shares on 06/22/2015 @ $33.0308 per share.
They still hold 1,251,988 MED shares, so these sales amounted to less than 1% of their MED holdings. I did a quick calc, and it looks like the sales amounted to about $313K. They'll be able to book a profit on these sales, as I believe their cost basis is around $28/share.
Recall that MLNK reported sales of around 3,900 MED shares @ $33 a bit more than 2 weeks ago, so they may be lightening up a bit when the share price hits $33. That's just spec on my part as I haven't got a clue what they're up to.
The time & sales site I use is showing this info:
15:34:36 ... 290,000 shares @ $ 3.50
No doubt this is the reason why MLNK share volume today topped 430K, which is almost 4X the average volume over the last 50 days. It's possible that HnH grabbed a big block - we'll see if they file in the next day or two.
Just saw SONS as an add on the russell microcap index, so that MAY have an effect. I think that came out last Friday, updated today & next Friday.
It's time for the annual Russell Index rebalancing. That said, I don't see SONS on the deletions list. Perhaps some funds switching from another stock that got axed.
The big after hours volume put me in mind of the rebalance, but I guess it's possible that there is another factor involved - SONS seems very oversold to me.
After just half of the trading day over, more MLNK shares have traded than usual - actually almost twice the volume for each of the last 2 full trading days. Given that bobo reported another HnH buy yesterday, it's quite possible that they're in the market again today, but we probably won't get that report until Friday. At any rate, MLNK's share price continues to meander about following the sharp drop after their earnings report.
bobo, thanks for the heads-up. The filing came out at 6:47, and I was on my way to my 50th class reunion (yikes!)
On 06/11/2015, HnH purchased 8,876 shares at an average price of $3.4011per share.
On 06/12/2015, HnH purchased 15,106 shares at an average price of $3.4439 per share.
That brings their direct ownership up to 2,469,018 shares. I think at some point new buys will require an amended 13D filing which should give us a better read on all the Steel Partner entities' MLNK stock ownership. I think I calculated it at 35% a couple of months ago.
I'm guessing that part of the reason for no HnH purchases in the past month is that they were observing the "quiet period" of 30 days prior to the release of the fiscal Q3 earnings. Of course, the skeptical among us would say that they knew that the report would drive the share price down and waited for the opportunity to buy at a lower price - which, incidentally, I did, suspecting that we might get a bit of a bounce.
all555, I agree that the numbers look pretty #$%$, but digging into the 10Q, I noticed that they took a $5M impairment charge on @Ventures, and, of course a restructuring charge (I think it was $2M). That would account for a pretty good slice of their reported $12M loss for the quarter. Not too bad, considering the loss of business, but still not what we've been looking (hoping?) for.
I'm hoping that management is clearing the decks, getting lean & mean and prepping for the acquisition of a more profitable line of business - of course, I've been expecting them to make a move for quite some time now. They don't appear 2b in any hurry - that's for sure!
Recall that short interest for MLNK was 590,118 shares as of 3/14/2014. Shortly after that, they announced the convertible placement and short interest skyrocketed, topping out at 7,361,924 shares on 6/13/2014. Since that time, short interest HAD been dropping - down to just above 5M shares for the first four reporting periods this year. Subsequently, it has been rising, and the latest figure you report - 6,263,754 shares puts short interest up almost 25% from that low.
It's my opinion that the rise was linked in part to the filing they made in mid-Feb registering another $100M shelf placement (though we haven't seen any sales as of yet).
fed, you're right. I had to go back to last quarter's report 2b sure since I could only find the 9-month figures in the latest report. At any rate, for fiscal Q2, MLNK showed cash & equiv. of $122.872M while they listed $151.425M in fiscal Q3 which they just reported.
The difference was not stock sales (though they sold a small amount of MED in early June). Fiscal Q2 securities was listed as $71.6M, while Q3 showed $74.8M. There was a drop of approximately $11.5M in accounts receivable and a bump in accounts payable, so it may be just a matter of timing on bill collection and paying their own bills.
Looks like a pretty good loss:
Net loss for the three months ended April 30, 2015 was $12.1 million, or $0.23 per basic and diluted share, compared to a net loss of $9.5 million, or $0.18 per basic and diluted share for same period in the prior year.
I'm not sure if this was already factored in by the street due to the loss of business we already knew about.
Here's an interesting clip vis-a-vis their possible acquisition strategy:
In addition to an acquisition that would enhance our existing comprehensive supply chain logistics services business, we are interested in acquiring (including but not limited to) industrial, defense or electronics related businesses with at least $25 million of EBITDA. We prefer companies with significant operations in the United States, good gross margins and returns on invested capital, sustainable competitive advantages, strong brands and excellent management.
Wellington Mgmt filed a form with the SEC today indicating that as of May 29 they had beneficial ownership of 1,569,923 shares of SONS stock. This compares to the 4,665,745 shares they reported as of March 31.
So, it appears that Wellington has sold something like 3 million SONS shares in the last 2 months.
Those reports appear to cover the last quarter of 2014. Both of the funds cited actually sold MLNK shares in the first quarter of 2015. Newtyn had 1.725M MLNK shares and sold 725,000 in Q1, while Schneider had 1.79M MLNK shares and sold 10,386 shares in Q1. Still a fairly large stake when you consider MLNK has something like 52M shares outstanding.