Further conjecture. The 13D filings in Barron's does include CHGO this week. Pizza Loca did sell 866,000 of their 1,131,200 shares, so they still do have 265,200 shares, at least they did as of the filing.
My guess is that the shares they still own were bought with cash, and the shares they sold were bought with borrowed money, and they didn't have the time or inclination to pay interest while waiting to see when the market would recognize the value of CHGO. Of course, with thay many shares remaining, any time they might sell a few, the price will be affected due to the low volume. If true, they must have calculated that earnings over the coming months (and years) could more than handle the interest payments if their takeover was successful--that bodes well.
This is all just a guess. |
