|
|
INSIDERTALK
On September 29 The Halifax Herald ran a Front Page story on " a Flurry of Lawsuits" filed by some brokerage houses againt individuals that are mainly insiders of the company. Let me explain my take on this. From the data in these news articles these people obviously held a lot of shares and they no longer owned them outright even though if you look at the insider trading pages here you will see that the bulk of these shares were NOT bought in the open market but rather through cheap of free options. IF they would have left those shares in non margin accounts they would currently not be subjected to these lawsuits. But what it appears that they did is they used the margin in this account created by the value of the KHI shares for other uses. Possibly they took the cash out of the acct or bought other shares. Now all of sudden they did not own the shares outright. In, effect, they borrowed against the value of the shares. I willa ssume most of you get the basic premise. That is infortunate for them personally but can only be attributed to stoopidity and greed. The reason I mention this new information is that it still does not change anything about my desire to know who was selling shares as the stock tanked.
Another update is Dan Potter and Gerry Doucet both filed new insider trade Buys on Sept 18th for trades made in July for very small purchases. And in our first day of Trading National bank did not sell one share but rather bought 50,000.
The Insider investigation starts here. I cannot prove anything at this point because insider trading reports are often filed long after the fact but I have downloaded a number of iles that will show conclusively that National bank is the brokerage of choice of all of the insiders. I will then show the trading history of the past month with volumes that will simply point out facts on line and on file. Until we have the insider reports filed I will let you draw your own conclusions.
Here are a collection of pages with interesting data.
khi_insider_trades.htm: This is the list of main Shareholders and all their reported trades
khi_insider_trades_other.htm: minor shareholders
KHI_individual_trades.htm: this page is a collection of a number of dates with each and every trade that day. I present it to cross reference to the insider trades above to prove that the majority of insider trading is done through National bank.
So assuming that this is conclusive I move on to presenting some more data called House positions - House positions summarize the total trades by broker for a given time frame. This report has a maximum time frame of a month.
This is the full year 2001 by month. 2001HP by Month. Nothing dramatic here other than National bank was supporting the stock all year until August.
BUT in the middle of the stock slide I have two date of interest. Aug21trades.htm and Aug22trades.htm. Ruthless selling. But Sept 13th the last day of trading and the day the TSE will likely investigate in depth is key. IF an insider was in possession of the information that was to follow that evening and they traded stocks that day they are in big trouble. here is the trade list for that day. Sept13trades.htm. Oh dear Nat bank selling Big time. Nat bank sold 148,000 shares and Yorkton sold 279,100. Now since Yorkton has hardly ever played this stock there are one of two things going on. 1. They are shorting it or 2 they are selling shares they got through National bank. That could be legal through a legitimate transfer of equities or a Jitney trade where national will supply them the shares later and the sells were done to disguise the seller.
So lets look at some more intersting data. This is the one week plunge in August House positions: One week price slide. But the most important one which is the last 30 days of trading which is also on the above link on the bottom of the page. national bank is the Big sleler by far and - well who do you think it was????. I have not figured out the Latimer sells - Once again could be similar situations as the Yorkton sells above.
So, some of these National bank sells are likely legal and they are legal only if the individual did not know about what was to happen. I would assume the board would be fully aware of the info.
PARAGRAPH DELETED
The TSE is reveiwing the compaint I sent them - Ultimately I want to know who was selling through National bank on the pertinent days in question.