B. MUTUAL FUND SELLING
Up until a year ago, the company has always been considered a gold/metals company. There are numerous mutual funds that are mandated to only buy and hold gold/metals companies. When a company held by one of those mutual funds changes their business model to effectively remove themselves from the gold/metal sector (e.g. Jordex), the mutual fund will dump their holdings of that company. This selling will occur, no matter how much potential the new company might have in their new business ventures. These funds have promised investors that the fund will only contain gold companies so they are forced to dump their shares.
According to SEC filings only two U.S gold/metal mutual funds held the company during the past year (http://www.10kwizard.com/)
According to these records, the Scudder mutual fund, which is a gold only mutual fund, have sold their entire 275,000 share holding in the company during the past year.
In addition, and according to the SEC records, as of June 30, 1999 the Midas fund quarterly report showed that they were still holding 400,000 shares of Jordex. The Midas fund is a well-known gold only mutual fund and has a policy of selling any companies not related to the gold industry. I was able to find that in July 1999 Oldum Securities (a brokerage house that had not bought or sold any shares of the company in the past two years) started dumping shares and driving the price down. Over the next 3 months this firm sold shares continuously without a single buy.
July - sold 50000
August - sold 298000
Sept. - sold 50000
This adds up to a grand total of 398,000 shares. As soon as they hit this mark the selling stopped cold and we haven't seen a single sale from Oldum Securities since Sept. 15/99. I assume that this selling was Oldum winding down the Midas fund holdings.
If I am correct, then the selling by these two U.S gold only mutual funds during the past year represent a total of 675,000 shares. These sales and sales from other metal-based mutual funds that are not U.S based may have artificially suppressing the price of Jordex during the past 6-9 months. The good news is that the volume in the past 9 months should have also provided these funds with more than enough opportunity to unwind their positions and remove any overhang from the stock. The recent price rise in Jordex suggests that the selling pressure has dried up.
14.FINAL THOUGHTS
I have gleaned this information from long of hours of research. Due to this research, and through conversations with other investors, I truly believe that this company is extremely well positioned for substantial growth. They have taken their time, protected their cash assets, and have brought in new management with both a depth of experience and connections. Their stated area of focus is one that is at the heart of the revolution that is now taking place. In recent talks with management I have got the impression that they are very close to announcing their investment strategy and plans going forward.
I believe in what they are doing. I like what I see, and I want to share my information with others. This way, we will all stand to profit in the future.
Thank you for reading this!
Keith Massey |
