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Herbert Samuel Jennings
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My professional background includes software engineering in Silicon Valley and Dot Coms, which includes alot of direct exposure to the needs and characteristics of startup environments. I have personally led the development of many software applications. I keep abreast of new developments within... More
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  • Allied Nevada, Continued

    Allied Nevada, Continued

    This is a repost from someone who wishes to remain anonymous, but is making great headway behind the scenes towards the formation of the special shareholder committee. So I am reposting his recent message to me about that topic:


    To Allied Nevada Shareholders, both long-time holders and new comers,For those of you who are following the Chapter 11 bankruptcy proceedings in the U.S. Bankruptcy Court in Delaware you are aware that an Official Committee of Equity Security Holders was formed with the task of representing shareholders. An Equity Committee is designed to pursue the maximum recovery possible for shareholders, and to undertake whatever is necessary under the law in order to do so. This happens in the courtroom but not the board room.The company's board and its creditors have filed what's been termed as a Restructuring Support Agreement (RSA). The company and its board have already stated they have 67% of the company's creditors in agreement that a Plan of Reorganization (NYSE:POR) that is based on the RSA is what they would be willing to vote for, without consultation or input from shareholders. The RSA portrays a board who has acquiesced to their creditors which is not the intent of the Chapter 11 process, but rather to protect the company from its creditors in order to reformulate its business. The board of directors either were not presented with the myriad alternatives to the RSA that preserve equity while providing creditors with their due, or simply chose not to consider them. Either way it is my belief they have acted contrary to the shareholders and should be replaced before they, in conjunction with the creditors, alleviate the shareholders of their value to satisfy their own self interest. Indeed, the RSA provides up to 10% of the common stock to the board/management in exchange for wiping out the value of current common stock, which may help cover losses on their currently owned stock quite nicely.In my research I have found that a company such as Allied Nevada is still bound by its corporate governance documents as well as the state law in which it is incorporated, in this case Delaware, even when a company files for bankruptcy. Under the by-laws of the company, shareholders who hold at least 20% of the common stock of the company are entitled to call for a special meeting of shareholders which would allow the shareholders to provide a slate of new directors to replace the current. I believe it is time to call for such a meeting. Shareholders who want to make a is your opportunity to do so. The shareholders should be allowed to place its own slate of board members up for a vote to replace the current board of directors. I think we all agree that this should be allowed to occur.The amount of shares that are necessary to petition the company to hold a special meeting are approximately 25.25 million. If you are motivated to call for a special meeting, send an email to, preferably with your share count and contact information and you will be provided further instructions. I think it is time that the board and management be held accountable for their actions.


    Tags: ANVGQ
    Apr 25 12:05 AM | Link | Comment!
  • Allied Nevada Gold: Special Shareholder Meeting

    Allied Nevada Gold: Special Shareholder Meeting

    There is a movement of Allied Nevada Gold ANVGQ shareholders who are interested in forming a special shareholder meeting, which would have the legal ability to:

    1 Replace the board of directors.
    2 Replace company management.
    3 Rewrite corporate bylaws.

    This would require approval from 20% of voting shares. Those who are interested in doing so should contact:

    Please make sure to include a statement including the following:
    1 Name
    2 Contact Info
    3 Number of shares you currently own.
    4 A statement that you authorize the formation of a special shareholder committee.

    Apr 24 7:11 PM | Link | 11 Comments
  • Some Basic Principles Of Short Interest

    This is a brief overview of the significance of short interest as a technical indicator for evaluating potential stock performance.


    To begin, shorting itself is when short-sellers sell shares they don't own, in the expectation that the price of a stock will fall. It's a bet against market support for a stock's price. If the price goes up, they lose money. If it drops, they gain. Short sellers are obligated to purchase their short-sold shares at some future time, and must maintain substantial collateral until that obligation is covered. Until then, they are "short" the stock, with inverse market exposure to its rises and drops.

    Short Interest

    The percent of shares short, relative to the total number of shares outstanding, is a technical indicator called "short interest". Stocks with high levels of short interest can have some very special characteristics, depending on the specific details of the stock, and the company. What follows is a summary of the most interesting of those characteristics.

    Short Squeeze Potential

    The most well known characteristic of stocks with high short interest is the potential for a short squeeze. This can happen when lots of shorts try to cover their short positions at the same time. This happens because "covering" actually means buying the stock, which exerts upward pressure on the share price. Under normal circumstances, the market can absorb multiple shorts covering without too much of a ripple effect, but when short interest is extremely high, covering can cause a massive chain reaction: each cover forcing other shorts to do the same. The result can be a very rapid increase in the stock's price, and when that rapid increase happens, it's called a short squeeze.

    Exhausted Shorting Pool

    Other times, under conditions of high volume shorting, they simply "run out" of shares to short. Higher short interest is an indicator for the possibility of this phenomenon. When it happens, it renders shorts completely impotent to drive a stock's price down any further; it thereby eliminates most of the downward pressure on share price.

    Price Support

    Another characteristic of stocks with high levels of short interest is price support. Because each short-seller is obligated to cover at some time, each is constantly shopping for the lowest price. As multiple shorts are willing to outbid each other at the floor, in order to cover before the others, they can have the cumulative effect of supporting a stock's price.

    Protection from High Volume Shorting

    Because institutional shorts use high volume shorting to drive stock prices down, high short interest can provide a degree of protection. That's for the reasons above, combined with the fact that high volume shorting increases short interest quickly, and high short interest is risky for shorts.

    Short Interest as a Bearish Indicator

    High short interest is often an indicator there's a strong bear case against a company. It's critical to understand the reason short interest accumulated, before deciding whether to invest.

    Short Interest as Opportunity

    High short interest does not always mean the bear case is airtight. In some cases, a stock with a favorable outlook can have high short interest, most especially after its outlook has changed in some positive way. Identifying these gems can be well worth your time, as the market reversal on these stocks can happen extremely fast.


    Short interest is a useful indicator for evaluating the potential of a stock to climb dramatically, its level of price support, and its resistance to high volume shorting. However, it is also useful for identifying a history of bearish sentiment. Therefore, this indicator must not be used in a vacuum. Investors should seek to understand the rationale for bearish sentiment before deciding whether the short interest is a compelling reason to invest, or the symptom of a compelling reason to avoid investing. The specifics answer that question.

    Dec 22 1:16 PM | Link | Comment!
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