I'm attaching this post to a previous one to provide perspective to past sales of MED shares by MLNK.
Tonight, 1/19, MLNK filed another amended 13D showing they have sold more MED shares. Here's a clip:
As of the close of business on January 15, 2016, ModusLink Securities owned directly 577,149 Shares, constituting approximately 4.9% of the Shares outstanding.
The aggregate purchase price of the 577,149 Shares owned directly by ModusLink Securities is approximately $16,234,256, including brokerage commissions.
(that would put their cost basis, including commissions at around $28.12/share on the remaining shares.)
I don't believe I posted the filing MLNK made of MED share sales on 1/14:
As of the close of business on January 12, 2016, ModusLink Securities owned directly 637,548 Shares, constituting approximately 5.4% of the Shares outstanding.
as of 9-18-15, MLNK held 1,057,537 MED Shares
as of 12-10-15, MLNK held 880,415 MED shares
as of 12-29-15, MLNK held 759,093 MED shares
as of 1-12-16, MLNK held 637,548 MED shares
as of 1-15-16, MLNK held 577,149 MED shares
or, they've sold around 480K shares in the last 4 months. Assuming they're making their sales on a FIFO basis, it looks as if they're probably booking anywhere from a $2-$5 profit on the sales, so at a VERY rough guess it looks like a $1 - $2M gain for those sales. Also, MED went X/D on 12/23, so MLNK got something like a $200,000 dividend on the shares they were holding at that time.
I think the cap gains rules may be different for corporations, but I believe that all the sales reported above were of shares held for over 1 year.
In an SEC report dated 12/31, MLNK reported the sale of what looks 2b another 120K shares of MED. The prices ranged from about $30-31/share. Here's the relevant information as copied from the filing:
As of the close of business on December 29, 2015, ModusLink Securities owned directly 759,093 Shares, constituting approximately 6.5% of the Shares outstanding. By virtue of its relationship with ModusLink Securities discussed in further detail in Item 2, MLNK may be deemed to beneficially own the Shares owned directly by ModusLink Securities.
The aggregate purchase price of the 759,093 Shares owned directly by ModusLink Securities is approximately $21,044,250, including brokerage commissions. The Shares owned directly by ModusLink Securities were acquired with the working capital of ModusLink Securities.
MLNKs previous report of MED share sales, filed Dec. 10 showed they held 880,415 shares or around 7.5% of MED shares o/s. Today's report equates to about 6.5%.
Again, if I've done my math right, their cost basis on the remaining shares is around $27.72/share.
Finally, I must have missed this filing due to the fact it was filed on New Year's Eve. Sorry, hic!
I was at breakfast this morning & saw the drop in MLNKs share price soon after the open. I rushed home to see if there was news, but got here shortly after 10:00 and saw price had popped back up. Looks like the low was $2.26. I'm tempted to say manipulation, but it's possible the market maker ran it down to take out some stop losses, since today's a light trading day. Also, there were two big volume spikes (big for MLNK) yesterday at around 1:00 & 3:00. I'm tempted to think something's up, but I've thought that way too many times in the past with this stock. As all555 noted, there could be some wash sale activity in Jan. The next earnings report isn't due until early March, so we may not hear any news here unless they do an acquisition of some kind.
Happy New Year to the long-suffering holders of CMGI & MLNK.
USE OF PROCEEDS
The amount of proceeds from this offering will depend upon the number of shares of our common stock sold and the market price at which they are sold. There can be no assurance that we will be able to sell any shares under or fully utilize the sales agreement with FBR, MLV, and HCW.
We intend to use the net proceeds from this offering for general corporate purposes, including, without limitation, sales and marketing activities, clinical development, making acquisitions of assets, businesses, companies or securities, capital expenditures and for working capital. We may temporarily invest the net proceeds in short-term, interest-bearing instruments or other investment-grade securities. We have not determined the amount of net proceeds to be used specifically for such purposes. As a result, management will retain broad discretion over the allocation of net proceeds.
Pretty much standard "use of funds" statement. I'm sure tartia can explicate it better than I, but my guess is to fund the drug development, though the "making acquisition of assets" is kind of interesting.
Merry Christmas all. We're entertaining our 4-year-old great granddaughter today, so I'm thinking I won't be doing a lot else. LOL
I've seen At Market Sales agreements with a lot of the bio stocks I follow. I'm sure it won't escape the board detractors that the abbreviation is ATM.
SPPI filed an S-3 registration with the SEC this morning.
This registration statement contains two prospectuses:
a base prospectus which covers the offering, issuance and sale of up to $250,000,000 of common stock, preferred stock, debt securities, warrants for debt or equity securities and units of the Registrant; and
a sales agreement prospectus covering the offering, issuance and sale of up to $100,000,000 of the Registrant’s common stock that may be issued and sold under an At Market Issuance Sales Agreement dated December 23, 2015 among the Registrant, FBR Capital Markets & Co., MLV & Co. LLC, and H.C. Wainwright & Co., LLC.
Did a quick search, and found the article. I'm wondering why it didn't pop up in Yahoo headlines or my Ameritrade news feed though. Anyhow, thanks for the info. If SONS pps moves up another $3.50, I'll be in the green!
They announced a 25 cent/quarter dividend on their stock last night, so it's possible this could give them a bounce, which in turn would increase MLNK's profit on their MED holdings. My suspicion is that MED made this move in response to promptings from some of their big holders.
As all55amer noted below, MLNK's Q1 numbers didn't look very good, even factoring out the "paper loss" on their MED holdings. However, MED has since regained its former pps, so if it stays there or goes up, MLNK will show a gain on those holdings in the next quarterly report, which would be a swing of around 35 cents if MEDs share price remains stable, more if it goes up.
Meanwhile, MLNKs share price has now hit yet another 52-week low at around $2.50. My best guess is year-end tax loss selling, but we have to remember that this is now a closely-held underfollowed security and they'll need to produce results of some sort in order to pump that share price back up. That said, if this is tax loss selling, we may get a bounce early next year.
MLNK's filing shows that they now hold 880,415 Medifast shares, or about 7.5% of shares outstanding. Here is a clip from today's SEC filing:
The aggregate purchase price of the 880,415 Shares owned directly by ModusLink Securities is approximately $24,480,609, including brokerage commissions.
If I did the math right, that works out to about $27.80 per share.
# of shares//// price //// date sold
2,400 $31.1385 11/17/2015
13,000 $31.0444 11/18/2015
400 $31.0088 11/19/2015
6,388 $31.0256 11/20/2015
9,558 $31.7738 11/23/2015
6,505 $31.6369 11/24/2015
5,722 $31.6369 11/25/2015
5,681 $31.9262 11/25/2015
17,901 $30.2376 12/2/2015
37,915 $30.0583 12/3/2015
21,652 $29.8308 12/4/2015
Meanwhile, it looks as if MLNK's share price hit a new 52-week low today. They should be able to book a nice gain on these sales in the Q4 report. More in next post...
Shellback's Q3 holdings report is showing 861,799 shares of SONS. I hadn't encountered this particular institutional investor before, and I see they've only been filing 13F holdings reports with the SEC for a year or so. They're HQ'd in Boston and have about $400M in investments.
Senzar's Q3 holdings include 1,766,991 shares of ARNA. This is a new position for them. Senza holds stock in about 3 dozen companies, all of which appear to be related to or in the drug/biotech sector.