Message Font: Serif | Sans-Serif
No. of Recommendations: 0

1-29-18 New Enterprise Associates (from Timonium) purchased 2.724MM Class B shares which have 10X voting rights, and convert 1=1 to Class A shares at any time. APPN and other companies typically do that to place shares in "friendly" hands so they can control the votes.

1-31-18 Novak Biddle VC (from Bethesda) bought 10.248MM Class B shares, including shares that went directly to the owners/founders.

Their play is to short some shares to drive the price lower, and which you can then buy a large amount of shares at that low price. There could be other VCs and private placements of the remaining shares.

60MM authorized shares
11MM Class A
49MM Class B

I received my broker's rate reduction email (from 99% to 85%) on Jan 30 at 8:40AM, yet today the price dropped another $1.20. Until the private placements get completed, there will be DEEP pockets very capable of suppressing the price until they get their deal(s) done. New Enterprise Associates bought 2.724MM x $30 share price = $82MM. And Novak Biddle bought 10.248MM x $30 = $307MM. Both possibly received some discount for their volume purchase, but we are still talking large investments into APPN. This is all ahead of their earnings report on February 22.

Summary: If I weren't already over weighted in shares, I would buy more as I think we're seeing the low soon.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.