Semi-Interesting Stock Transactions

[JoeBob]

I don't know what the policy at OC is regarding financial stuff. I could see reasoning to move it all to off-topic, but I'll give it a whirl here. WB, feel free to move this or clarify the policy.

It looks like High Rock Capital sold all of their shares, they've got a filing with the SEC showing them owning 0 shares. http://www.sec.gov/Archives/edgar/data/1051825/000095013503000740/0000950135-03-000740.txt To be honest, I don't remember how many shares they had in the first place (and I don't care enough to look).

It also looks like the Fidelity Low Priced Stock Fund now owns 9.999% of CART (with some other Fidelity fund(s) owning another .072% of CART, giving Fidelity control over 10.071% of CART.) (Details of this are here: http://www.sec.gov/Archives/edgar/data/1051825/000031506603000180/0000315066-03-000180.txt )

What does all of this mean? Who knows! But, thats a big chunk of stock being voted on by a single group.

[nrc]

Interesting indeed. Fidelity is a pretty respected company and their FLPSX fund carries a 5 star Morningstar rating.

They had 6.86% of the stock back in July according to Yahoo! Financial. That may have been bought as low as $4, but was more likely purchased during all the activity at $8. Since then they've probably been watching to see where CART would go. They may have gotten a bit nervous from time to time, but now with things looking to be stablized they probably see a good opportunity to reduce their cost basis for the stock they're holding.

The good thing about this is that if Pook has started to make believers on Wall Street in spite of their lack of guidance, they're doing pretty well. I'm assuming that a Fidelity fund manager is not going to be shocked when the losses for 2002 are all tallied up.

There is another aspect to this as well. As I've pointed out before, CART's survival isn't as simple as how much money do they have, how much are they losing, when will they run out of money. If they can show that they are clearly on a path back to profitability there are options which will allow them to raise additional funds to help them get back to profitability. Having an interest from someone like Fidelity (who has their own Venture capital arm) cannot hurt in that respect.

[Napoleon]

Originally posted by JoeBob
It also looks like the Fidelity Low Priced Stock Fund now owns 9.999% of CART (with some other Fidelity fund(s) owning another .072% of CART, giving Fidelity control over 10.071% of CART.) (Details of this are here: http://www.sec.gov/Archives/edgar/data/1051825/000031506603000180/0000315066-03-000180.txt )

What does all of this mean?

It means I am now an indirect owner of C^RT>