DESC - update
As you know, DESC sold off hard the last week or so. Today, we may have learned the reason for the recent sell-off albeit courtesy of a Form 4 filed today for Director Robert W. Shaw in which he reported acquiring a total of 4,304 shares. This may be very important for several reasons. First, Mr. Shaw already owned approx. 475,000 shares before this transaction. Second, he didn't sell them. Third, take a close look at the quoted language from the footnote in the Form below.
"Shares received from Micro-Generation Technology Fund, LLC (3,155) and Arete Venture Investors II, LP (1,149) as part of a distribution to their members of DESC common stock released from escrow. Shares were held in escrow as part of the Northern Power Systems acquisition agreement. Reporting person is President of Arete Corp. Micro-Generation Technology Fund, LLC and Arete Venture Investors II, LP are managed by Arete Corp."
In terms of the relationship to the recent sell-off, obviously, the key is the date of the release from escrow. This Form was not reported until today; however, the transaction date was December 19, which means that, at a minimum, some shares were released on that date. I suspect that other "parties" received their distribution at or around the same time.
This looks like this maybe the ol' "lock-up" trick as in indirect stakeholders ho received this distribution of DESC shares, which they didn't pay a dime for, and are happy to unload at any price. |
