Banchee,
What's my take on the SWRX rise? Well it's about the same as the earnings/share increases that CCC continues to report.
Here's why. After a quick glance at the SWRX filings since they went public, it appears that CCC has been in the paper printing business, selling a bunch of SWRX stock into the market.
When they went public (7/1 ?) there were 4.2mil shares offered. By 9/30/98 there were 15.9 mil shares outstanding, or an increase of 11.7 mil shares in just a 90 day period.
That effort makes CCC's antics on their own stock, look pallid at least on a % basis. It would also account for the price heading down from it's opening at $7/share.
Since I have not seen a 10K as yet, nor numbers from the 4th qtr, I can only guess at what has made the SWRX price run up in the last month.
If you look at Yahoo finance, SWRX shows $.20/share earnings based on the 15.9mil shares out. Since we have NO IDEA how much more may have been sold after 9/30/98, it is difficult to project their possible increase in earnings from ongoing operations.
In all of this, I am ASSUMING CCC is the one selling the stock (since they own the remaining 70%) and that SWRX receives no benefit . If someone else has a take on this issue, I'd love to hear it.
For those who hold SWRX stock, I am hopeful their share increase is based on something other than stock revs. The market didn't much like it yesterday and it has opened at $9/share today.
You know, it is behaving much the way CCC does after options and bonuses are issued. For some unexplained reason the price seems to spike up for a day or two, a number of people sell, and then resume its former level.
BTW, the latest SWRX 10Q had the following note about their stock and contained a nice little benefit for CCC. Since I don't follow SWRX, this was the first I'd seen of it....
"Increase in Authorized Shares and Stock Split"
" On May 27, 1998, the Company restated its articles of incorporation to
increase the number of authorized shares to 2,000,000 preferred shares and
150,000,000 common shares. Additionally, on May 28, 1998, the Board of Directors
of SOFTWORKS effected a 5,000-for-1 stock split. Further, on June 29, 1998, the
Board of Directors of SOFTWORKS declared and issued a stock dividend of 583,000
shares of Common Stock to the Parent. The effects of the stock split and stock
dividend have been given retroactive application in the consolidated financial
statements for all periods presented."
Hope that was a help.
Rob
I'll check out that thread.
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