FormerXBC Inc XEBEQ

RE:Don't forget the most important facts

[Gann999]

Do you have personal knowledge of him selling all his shares because I have heard the opposite that he has not sold his shares and you don't find the fact that these drops took place after numbers were out says otherwise.

tamaracktop wrote:

Fact: Xebec closed at $1.83 on May 11th on 287,000 shares, down 4 cents. Down 2.14%

Fact: Xebec closed at $1.31 on May 12th on 2.86 million shares, down 52 cents.  Down 28.42%

Fact: Xebec closed at $0.99 on May 13th on 5.22 million shares, down  32 cents. Down 24.43%

Fact: Xebec dropped from $1.83 on May 11th to $0.99 on May 13th on a cumulative volume of 8.08 million shares. Down 46%.

Fact: Kurt Sorschak ceased to be an insider on May 12th.
He no longer had to report.

Fact: Kurt owned a total of 7,611,860 shares personally and in 2 family trusts on May 11th, the day before he was no longer obliged to report his transactions.

Fact: Xebec reported Q1 on May 12th.

Conclusion?? Kurt sold his shares, plain and simple.
He flooded the market with 7.6 million shares.

Why did he do it? We'll never know, but there could be any number of reasons. 

 

Any number of perfectly legitimate reasons.

Insiders buy for only one reason but sell for any number of reasons.
 

Sometimes insiders sell shares to diversify, make a major purchase, or for estate or tax planning reasons.

Or maybe in this case Kurt just decided he wanted to retire.

If we assume that he did in fact sell his shares, and we pro-rate the volumes and VWaps on May 12th and 13th, we can conclude that he sold 7.6 million shares at an average price of $1.19 for net proceeds of just over $9 million.

Kurt had already pocketed $7.2 million by participating separately in the offering at $3.60 on June 26th, 2020.

Maybe he just decided to call it quits, with $16.2 million pre-tax in the bank.

In this day and age, wouldn't you consider it?

I've tried many times to find out how old Kurt is to no avail.
That would be good to know.

Is he a turncoat?... or did he do anything illegal?
Absolutely not.

Kurt saved this company from bankruptcy in October of 2012, when the stock hardly traded, and when it did it was at 6 cents.

Xebec ended 2012 with current assets of $7.6 million and current liabilities of $6.8 million.

If Kurt sold all his shares 8 years later for millions can you blame him?

No. He's a hero.

Xebec shares were hit hard during those 2 days last May simply because the founder of the company decided to sell his stake and retire after building something worth nothing into a $1.7 billion company at its peak only 8 years later.

Ask yourself if you wouldn't have considered doing the same thing.

There was a flood of shares available in the market over those 2 days and the result was what we saw.

The same would have happened under the same circumstances to any small-cap.

How could the stock possibly have recovered in the markets we've had since mid-May?

It was Kurt's decision to exit with dignity that caused this stock to disassociate with the fundamentals of its peers, and the market hasn't figured that out yet.

In my opinion, that's exactly what happened.

 

I sincerely hope he's enjoying his retirement.

He deseves to.