RE: Escrow ended early JulyCorrection: While reading SDI's 2Q Financial Statements, I discovered that Desjardins received warrants exercisable at 40 cents, not shares at 40 cents as stated in my post. I mis-read the prospectus and news releases. It was always stated as warrants. This means Desjardins is likely not the "Anonymous" seller recently. (Their activity as market-maker is traded under their Desjardins flag on the TMX. I know, because they keep coming in and stealing part of my buy-order fill at attractively low prices so they can turn around and sell them 3 cents higher.)
The anonymous sellers are likely some growth fund managers. Recently, SWYG posted a list of holders in his "Ducks in Order" post. Some of the fund report dates show March 31 2010 results. I have recently come across another fund holding report (partial list) with June 30th reporting dates which show AGF London Life Growth Equity fund selling 7,000 shares in the second quarter to reduce their holding to about 780,000 shares. Also Great-West Life Growth Equity fund sold 3,000 shares in 2Q to hold about 195,000 shares. That's not much selling, but it does show that fund managers do occasional selling even if it is trivial to their holding. In an illiquid company like this, that matters a lot.
But has their been any selling on termination of escrow? My guess now it that escrow expiry was not a big deal.
I did notice on reading the MWC 2Q financials that MWC marks their SDI shares to market on the last day of the quarter. A decline in the SDI share price triggers an automatic loss on the MWC quarterly earnings statement. Maybe someone who has it in for Giese might dump some SDI shares on the market on the last trading day of the quarter, just trash Giese's MWC earnings statement. Conversely, Giese could buy SDI shares on the open market toward quarter-end and give MWC a big profit. However, anyone who does this is a fool, since it is only temporary. The stock reverts to its old level within a couple of days.