After the PR on the 27th about the Boeing deal, (which was fairly significant IMO despite the cash flow lag), the stock opened strong, gapping up. Once trading, here are the top sellers:
House Positions for DRL from 05/27/99 to 05/27/99
Ex House Bought Av/Sh Sold Av/Sh Net $Net
T 64 Octagon 0 0.00 155100 2.72 -155100 421590
T 80 First Marathon 3500 2.70 20500 2.68 -17000 45545
T 74 Griffiths 0 0.00 15000 2.72 -15000 40750
Interesting that the next day the NP has the following article:
nationalpost.com
In particular from the article: <<But Greg McLeish, an analyst at Octagon Capital Corp., said the positive deal may come too late to save Derlan because there likely won't be any deliveries until 2002.
Derlan has been a chronic under-performer, with a total return of negative 47% over the past five years, and Mr. McLeish said investors want a complete sale of the company.>>
Since January 1 of this year until May 26, Octagon has traded DRL for a net sale position of 2500 shares. On the day of the positive NR, Octagon sells 155,100 shares (approx. 10 times avg. trading vol.), thereby capping any run that may have occurred. Then their analyst comes out and says its an underperformer, investors want to sell the company. Next day, Octagon is awfully quiet in the market (zero trades).
The trading by Octagon was unusual on the day of the press release. When I saw the article in the NP the following day, it looked to me like a takeover could be in the works (why else keep a cap on the stock price), although I was thinking hostile. The article you posted lends credence to the possibility of a takeover/sale.
Top sellers the day after the PR were:
House Positions for DRL from 05/28/99 to 05/28/99
Ex House Bought Av/Sh Sold Av/Sh Net $Net
T 74 Griffiths 5000 2.22 81200 2.42 -76200 185422
T 79 Gundy 6000 2.31 24800 2.47 -18800 47408
T 7 Green Line 34300 2.52 44700 2.37 -10400 19834
Top net sellers for both days (day of the PR and the day after) were Octagon and Griffiths:
House Positions for DRL from 05/27/99 to 05/28/99
Ex House Bought Av/Sh Sold Av/Sh Net $Net
T 64 Octagon 0 0.00 155100 2.72 -155100 421590
T 74 Griffiths 5000 2.22 96200 2.47 -91200 226172
T 79 Gundy 19500 2.57 48800 2.57 -29300 75459
From DRL's AIF dated April 29/99:
<<Based upon reports filed with the Ontario Securities Commission, as of such date, the only person, firm or corporation who beneficially owned, directly or indirectly, or exercised control or direction over more than ten percent of the issued and outstanding Common Shares of the Company was C.A. Delaney Capital Management Ltd., which exercised control or direction over 5,272,075 Common Shares representing approximately 18.28% of the issued and outstanding Common Shares.>>
C.A. Delaney manages mutual funds (ex/ on behalf of Spectrum's Canadian funds, although C.A.D. is being terminated by Spectrum).
I don't know if Octagon or Griffiths is trading on a funds behalf.
The two houses could also have been shorting. I don't think they were just selling holdings - if that were the case, they effectively dampened the price whereas they could have let it run and then sold into stronger momentum. Could, as always, be nothing.
Regards, t. |
