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Smiannarone
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I'm an avid investor actively searching for good opportunities in the market. I'm a graduate of C.W. Post university. Stocks have intrigued me since I was a teenager. I've been actively trading for the last ten years and am an every day guy currently working for Cablevision on Long Island. I... More
  • Recent Insider Trades Of Magnum Hunter Resources 0 comments
    May 3, 2013 10:22 AM | about stocks: MHR

    I was just doing some research on Magnum Hunter Resources when I came across recent SEC filings. Mr. Swanson sold off a small amount of shares over the last month. His explanation is as follows.

    Explanation of Responses:
    (1)Mr. Swanson was forced to sell stock pursuant to a margin call created when the issuer's stock trades below certain price levels.
    (2)The reported price of $2.76 is a weighted average price pursuant to multiple transactions at prices ranging from $2.75 to $2.77.

    Explanation of Responses:
    (1)Mr. Swanson was forced to sell stock pursuant to a margin call created when the issuer's stock trades below certain price levels.
    (2)The reported price of $2.63 is a weighted average price pursuant to multiple transactions at prices ranging from $2.51 to $2.73.
    Explanation of Responses:
    (1)Mr. Swanson was forced to sell stock pursuant to a margin call created when the issuer's stock traded below certain price levels.
    (2)The reported price of $2.44 is a weighted average price pursuant to multiple transactions at prices ranging from $2.39 to $2.60.
    (3)The reported price of $2.47 is a weighted average price pursuant to multiple transactions at prices ranging from $2.46 to $2.48.

    These three transactions occurred on 4/23/13,4/26/13 and 4/30/13. I believe this small fact is a key piece of evidence as to the intent of the company regarding the audit. Mr. Swanson like many others believed in the company enough to invest additional funds through a margin account prior to the drop in price. He was forced to sell some shares to cover his losses but retains a substantial position. This key point remains in line with what was said during the conference call. It was stated that the employees of the company were hit just as hard by the sell off, that they have the money to pay the dividends and their hands are tied until the audit is complete at which point things should return to business as usual. I also found no records of BlackRock or The Vanguard Group reducing their 5% stakes in the company which were initiated in February of 2013.

    https://research.ameritrade.com/wwws/stocks/secfilings/filing.asp?data=B64ENCeyJEb2N1bWVudEtleSI6IjEzNy0wMDAxMDE5Njg3MTMwMDE1NjItMVQ4TkRUNTBVUVUxS0pRMzY1T1ZJTUpCTjQiLCJGT1JNQVQiOiJIVE0iLCJGT1JNX1RZUEUiOiI0IiwiQ0FURUdPUlkiOiJJbnNpZGVyIEJ1eS9TZWxsIiwiRG9jdW1lbnREYXRlIjoiMjAxMy0wNC0zMCAyMzo1NDowOSIsIkRvY3VtZW50RGF0ZV9mIjoiMDQvMzAvMjAxMyIsIkFNRU5ERUQiOmZhbHNlLCJBTUVOREVEX2YiOiIifQ==s usual.

    Disclosure: I am long MHR.

    Stocks: MHR
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