[I think Cioffi is on margin]
Suppose you have been granted a huge amount of shares in a small startup company.
Since you were given one million shares you then run to your broker and
hand over the stock certificates. At the same time suppose that you feel your company
is going to be very successful. So sometime down the road you get the idea to buy more
shares ON MARGIN. Your broker then says you are allowed to purchase 60% of your
current assets for this, thus bringing your current holdings to 1.6M shares.
The STOCK SMART web site says that Cioffi had at one time owned this amount:
stocksmart.com
(Now the data from below contradicts this amount by about +600,000 shares. I took it
from post:
exchange2000.com
(My question is if something like this happens, does Cioffi go down as owning
the margin shares??? Or does the brokerage house go down on record for that.
This would explain the difference in the total shares held).
Anyway.now lets suppose that at the time he went on margin. the shares had already rocketed
up to $20-22/sh. So to make a long story short, the share price tanks
and he is now being forced to sell shares to pay for continual margin calls.
What I am saying is that I think the Cioffi is selling in order for him to cover his
own margin calls. And it may be that he is bleeding more that anyone. It depends when
he started. To try and substantiate this.I consolidated all the Cioffi data coming
from the above post to try and see some sort of pattern. Things look reasonable
to me that this could be the case.
NAME DATE SHARES SHARE TOTAL
SOLD SOLD PRICE HOLDINGS
CIOFFI JOHN M 03/14/96 35,000 7.06 --
03/15/96 15,000 7.06 --
03/29/96 40,000 9.00 894,920
07/09/96 10,000 14.00 --
07/09/96 15,000 13.88 --
07/10/96 2,500 14.75 --
07/10/96 22,500 14.63 909,028
11/20/96 20,000 17.00 --
11/21/96 15,027 17.00 --
11/21/96 1,473 17.00 --
11/25/96 6,500 17.00 --
11/29/96 1,000 17.00 --
11/29/96 34,000 17.00 --
12/03/96 11,500 17.00 994,828
NAME DATE SHARES SHARE TOTAL
BOUGHT PRICE HOLDINGS
CIOFFI JOHN M 11/28/95 934,920 N/A 934,920
(market was worth about $8/sh here).
05/08/96 64,108 N/A --
( $22/sh)
NAME LAST STOCK TOTAL
TRANSACTION TYPE HOLDINGS
CIOFFI JOHN M 12/30/96 COM 999,028
Now let me add the new data that John Morrison and Salim have posted yesterday.
Be warned that the first 4 lines are repeat data from the table above:
march 14th 1996 sold 90,000 | for 720000 (avg of $8/sh)
Apr 5th 10,000 | for 90000 ($9/sh)
Nov 20-Dec 3rd 12,500 for 212500 ($17)
Nov 20-Dec 3rd 87,500 for 1509375 (avg of 17.25/sh)
March 24th or 17th?1997 50,000 for 668750 ( $9?)
Apr 16th 50,000 for 462500 ($9?)
Yep. Looks like it to me.
MY OPINION????
I think Cioffi is bleeding on margin. :- )
-Eric |
