Saf T Lok Shrs Soar On Research Report From Unknown Firm
By Eric Weiner and Justin Oppelaar
NEW YORK (Dow Jones)--Shares of Saf T Lok Inc. (LOCK) soared
33% Wednesday on staggering volume after a little-known Atlanta
securities firm initiated coverage of the handgun equipment maker with a strong buy rating.
But, a futher examination of the Atlanta securities firm, Woodward Trading Co., and it's president and chief investment officer, Craig H. Woodward, raises more questions than answers.
In a generally down day for the stock market, Saf T Lok's Nasdaq-listed shares closed up 1 1/4, or 33.3%, at 5 on volume of 16.7 million compared with average daily volume of 275,195. A spokeswoman at Saf T Lok primarily attributed the runup to Woodward Trading's press release.
Shortly after the market opened Wednesday, Woodward Trading issued a research report on the PR Newswire service stating that Saf T Lok's shares could climb to 30 in the next 12 months. The stock closed trading Tuesday at 3 3/4.
The Woodward report was a rambling statement that mentioned the recent spate of school shootings; the murder of three police officers in Tampa, Fla.; America's fascination with Internet stocks; and the troubles with tobacco companies; among other things. It also cited reference texts such as the Textbook of Penetrating Injury, the Journal of the American Medical Association and Join Together Online.
In a couple of interviews with Dow Jones Newswires, Woodward offered different versions of his firm's business. At one point, when confronted with these conflicting versions, he apologized for making false statements to a reporter earlier.
Woodward said his company is a money management firm that does
institutional research for hedge funds, banks and insurance companies. He declined to name his clients. In an earlier interview, he said the firm has been in business for eight years and has "several hundred people on the payroll."
However, he later said he actually has only a few employees, and that the firm he clears his trades through, Raymond James Financial Inc. (RJF), has "several hundred employees in its back office."
In the earlier interview Woodward said his title was chief investment officer. When asked why he wasn't president or chief executive of the firm that carried his name, he responded that he left the paper shuffling to others. He apologized for the false statement.
Later, he gave another conflicting statement. Woodward said he was in fact president of the firm and the chief executive was Adam Margolies, a person he had also described in the interview as a consultant.
djinteractive.com |
