Actually, if you look closer, the first filing reflects Kernco's original purchase of 1,000,000 shares of JMAR Common Stock and Warrants for 250,000 shares in November, 1997. The amendment reflects that Kernco only owned 750,000 shares and the same 250,000 Warrants as of November, 1998. Thus, Kernco was filing to reflect that they had sold (as of November, 1998) approximately 250,000 of their JMAR shares. As I understand the SEC rules, when one first acquires 5% or more of the shares of a public company you have to file a 13D like this. The filer then has an obligation (for as long as they remain over 5%) to file amendments to reflect "material" changes in their ownership (up or down). That is what this looks like, i.e., Kernco filing an amendment (although it looks like it is a few months late) to reflect the fact that they had sold 250,000 shares last year. Presumably these shares were sold incrementally over time. The 13D rules are not very clear on exactly when you have to file an amendment or for how large or small a change. I believe you have to file an amendment when you have a 1% or more change in ownership (e.g., a change from owning 6% to 5%.)
What would be interesting to find out is how any of this correlates with the infamous "Short" position that these guys are supposed to have created. It looks like the short position has come down a little over the past six months (from over 770,000 to 670,000) and around the same time these guys have also sold some of their shares as well. |
