Q: Hi 5i,
I’m continuing to hold some Callidus (CBL) shares reasonably patiently. But I’d be interested in any further thoughts on the insider activity on CBL over the past few months. The INK report shows predominantly two buyers: Braslyn Ltd and Callidus itself. (You noted previously that Lewis controls Braslyn) The shares repurchased by Callidus are consistently cancelled at the end of each month. The Braslyn purchases are small lots (a few as big as 10-15,000 but smaller most recently), certainly relative to the size of Braslyn’s total holding (over 7.1M shares). Small lots obviously won’t move the price significantly on a given day. But is this buying too incremental to be significant or might something be going on? Obviously if there is to be a go-private takeover at a premium, continuing to accumulate near $10 might work out well for Braslyn. But is it likely that Braslyn is angling to orchestrate a takeover itself? The trading share float seems relatively small on this already (around $100M and less than 20% of the market cap). I don’t know if I have seen a situation quite like this one before. It seems like if the float erodes enough the current insiders could just have it go private by agreement. Thanks.
I’m continuing to hold some Callidus (CBL) shares reasonably patiently. But I’d be interested in any further thoughts on the insider activity on CBL over the past few months. The INK report shows predominantly two buyers: Braslyn Ltd and Callidus itself. (You noted previously that Lewis controls Braslyn) The shares repurchased by Callidus are consistently cancelled at the end of each month. The Braslyn purchases are small lots (a few as big as 10-15,000 but smaller most recently), certainly relative to the size of Braslyn’s total holding (over 7.1M shares). Small lots obviously won’t move the price significantly on a given day. But is this buying too incremental to be significant or might something be going on? Obviously if there is to be a go-private takeover at a premium, continuing to accumulate near $10 might work out well for Braslyn. But is it likely that Braslyn is angling to orchestrate a takeover itself? The trading share float seems relatively small on this already (around $100M and less than 20% of the market cap). I don’t know if I have seen a situation quite like this one before. It seems like if the float erodes enough the current insiders could just have it go private by agreement. Thanks.
