You certainly raise a point Red. But consider this ...
I reviewed the insider report - he bot $315K worth of stock from Jan-May of this year. At prices ranging from 0.315 to 0.21. Total of 1.2M. Buying on the way down. Up to May then nothing.
Significant 2010 news releases:
Jan-Mar3 - Auditor related changes;
Mar 4 - "Fortress Energy Inc. Enters into Letter of Intent to Acquire a Significant Producing Natural Gas Property and Intends to Establish Regular Dividends";
Mar 11 - "FORTRESS ENERGY REPORTS 15% INCREASE IN RESERVES FOR 2009"
Mar 29 - Financial statements
Mar 31 - Subscription receipts
Apr 29 - Management Circular. Only mention of Bruce Mitchell:
Principal Shareholders
To the knowledge of the executive officers and directors of the Corporation, as of the date hereof, no
Shareholder owns of record or beneficially, directly or indirectly, more than 10% of the issued and
outstanding Common Shares, as at the date hereof other than as follows: Bruce Mitchell holds 10,182,364
Common Shares representing 18.4% of the issued and outstanding Common Shares.
As mentioned previously (Boolish?) not a director.
May 7 - last purchase by Mitchell
May 13 - 1st Quarter results
May 25 - Eyebrow raiser ... canceled AGM
Fortress Energy Inc. (“Fortress” or “the Company”) (TSX: FEI) announces that it has cancelled the Annual General Meeting scheduled to be held on Tuesday, May 25, 2010, pending a review of strategic alternatives being pursued by the Board of Directors. The Annual General Meeting will be rescheduled to occur on or before June 30, 2010.
Jun 30 - Reschedule AGM to Aug 16
Jul 15 - Announce sale of "substantially" all of its Oil & Gas properties to "Terra"
Jul 22 - Yet another reschedule of AGM to Aug 22
Jul 28 - New mgmt circular with updated info
To the knowledge of the executive officers and directors of the Corporation, as of the date hereof, no Shareholder owns of record or beneficially, directly or indirectly, more than 10% of the issued and outstanding Common Shares, as at the date hereof other than Bruce Mitchell who holds 10,723,364 Common Shares representing 19.4% of the issued and outstanding Common Shares.
Aug 12 - Q2 results
Sep 1 - Sale to Terra approved and deal closed
Nov 12 - Q3 results
He buys as the stock declines. He stopped buying just before the news of the sale of the properties. The sale doesn't do anything with the stock and it continues to erode.
Now the stock is rising and he decides to sell - the sale nets him $600K - a profit of $300K when you discount his bad buying at the beginning of the year.
Further, not sure when he became a major shareholder. Since the start of 09 the price went from .20 to .53 and then down from there. Not spinning through all prior documents but the LAST management circular prior to Apr/10 was Apr/09, he held 6M shares. So between the two periods he added 4M. The stock hit its peak around Sep/09.
Your point is well taken - OTOH my issues are:
a) He is not a director;
b) Why add more in the spring at higher prices esp with a declining stock price?
IMO, he is not doing that well trading the stock. I would say he wants to get out of the hole he dug in the spring by selling now cuz he has no clue where it will go. Bird in the hand today, he walks away with a $300K profit. Maybe he is done and just wants to move on. Could have sold just enough to break even - but wanted some profit.
If he DID know something ... then we would see even more selling (as Boolish did mention) this week (or will in the week or two weeks ahead) - he has, as stated previously at least 6M shares left. I say the other 6M will be released as the price moves higher.
I am not seeing the "he knows something" theory here. My views would be different if the board was lit with sells from directors and/or lots of internal action. Not seeing it. Now whether or not the stock is good to hold in principle - is something totally different.
I think everyone is cheering Bruce on - yeah, Bruce, we want a higher price too!
Correct me if I am wrong - the moment you own 10% you are listed in their documents correct? So that could be anyone - you, me, whoever.
I don't do this kind of digging and joining stuff together - so I welcome your thoughts Red.
blake |
