Yes and you called it. Move was probably based on the below announcement and as you said you didn't know what was on people's minds but your technical analysis indicated to you that something was happening.
But what do you make of this news? I was amazed to learn (I think this is correct) than insiders control over 90% of the stock. I also think I read recently that they are changing the companies name to National Discount Brokers. They could have had a secondary offering but chose this route. They must be planning to sell this company at some point. I assume there was an attempt last year, it failed, and now they plan to upgrade their service, increase their market share and try again. Does any of this make any sense to you?
Friday December 5, 8:44 am Eastern Time
Company Press Release
Sherwood Group Receives $19.3 Million From Sale of
Treasury Stock
Proceeds to be Used to Extend and Expand Scope of Leading Internet
Brokerage Services Provider, National Discount Brokers
JERSEY CITY, N.J.--(BUSINESS WIRE)--December 5, 1997-- The Sherwood Group (NYSE:
SHD - news) today announced that it has entered into an agreement
with Bermuda-based IAT Reinsurance Syndicate Ltd. for the sale
of 1.5 million shares of Sherwood common stock at $12.875 per
share. IAT, an entity controlled by investor Peter Kellogg,
will receive shares from the company's treasury stock. The deal,
which is expected to close in the next two months and is
subject to approval under the Hart-Scott-Rodino Act, boosts Mr. Kellogg's holdings from approximately 8% to 17.8%.
According to Arthur Kontos, Vice Chairman and CEO of The Sherwood Group, proceeds from the transaction, valued at $19.3 million,
will be used for general corporate purposes and marketing
activities to support the expansion of National Discount Brokers (NDB), the company's Internet trading and financial services subsidiary.
Sherwood plans to increase the scope of NDB's advertising,
marketing and financial services capabilities, among other areas,
and leverage its core competencies as an innovator in investment
services and Internet commerce.
Mr. Kontos commented, ''The sizeable investment by Mr. Kellogg underscores our optimism about the strategic growth potential of National Discount Brokers (NDB), and is a true vote of confidence
from one of the company's largest shareholders. The infusion of
funds will give us the opportunity to build the NDB brand and
deliver even greater value to individual investors using
e-commerce.''
''Peter Kellogg is widely noted on Wall Street as a visionary
and an astute investor and The Sherwood Group has benefited
from his support through the years,'' Mr. Kontos added.
National Discount Brokers, a member of the NASD and SIPC, is
a wholly owned subsidiary of The Sherwood Group. Currently,
NDB has over 110,000 customer accounts with assets in excess
of $4.8 billion. The company was a pioneer in the development
of flat fee pricing and was one of the first major discounters
to provide trading on the Internet. NDB WebStationSM,
www.ndb.com, features a personalized stock-ticker, account
linking capabilities, real-time stock quotes, dynamic
charting, and up-to-minute news including real- time Reuters
newswire coverage.
NDB customers can also access current research from Zacks
Company reports and Baseline Company Profiles, and a full
range of personal trading resources including a broad
selection of mutual funds and cash management vehicles
for investors. NDB is a featured on-line discount
broker for CompuServe, a sponsor of Forbes magazine's on
-line Daily Rocket Investment Monitor and showcased at
Microsoft Investor.
Headquartered in Jersey City, New Jersey, The Sherwood Group,
Inc. is the parent company of three financial services entities: National Discount Brokers, Sherwood Securities and MXNet. The
Sherwood Group also owns the majority interest in a limited partnership in Equitrade Partners, a specialist on the New
York Stock Exchange. Combined, the four entities generate
more than five million transactions annually. The company
has offices in New York, Los Angeles, Chicago,
Denver, Minneapolis and Boston.
Contact:
The MWW Group
Public Relations - Tel. (201) 507-9500
Alissa Blate (ablate@mww.com)
Kara Gilmore (kgilmore@mww.com) |
