Accentuating the caveat emptor perspective with critical commentary on financial disclosure. I adopt a skeptical persona and look for chinks in the teflon coating of financial disclosure. My job is to identify financial warts. Perhaps a Black Swan. Disclosure: I do not hold positions in stocks mentioned for three trading days before or after blog post.
Thursday, October 19, 2006
Mobility Electronics Amends Shareholders Rights
Mobility Electronics, Inc. (Nasdaq:MOBE) recently filed an 8K material change notice, which allows Adage Capital Partners GP LLC to increase their ownership from 20% to 25% without triggering the shareholders rights program. The amendment was made at the request of Adage. I mentioned this company in an Oct 6, 2006 posting. Essentially I was critical about a number of lost sales and customers. So the question is why does Adage want more? Why should the shareholder rights plan be amended to their benefit? Is this a creeping takeover? Is the company being driven into the ditch purposefully? SEC and securities class action lawyers are you listening?