Wednesday, April 1, 2009

McClatchy stock mystery -- unknown seller dumped an astonishing 9.8 million shares Tuesday

Hmmm... a mystery seller unloaded 9.8 million shares on Tuesday.
At 13 minutes after noon on Tuesday an astounding 9.815 million shares of MNI traded at 49.5 cents. The single trade accounted for nearly all the volume 10.3 million shares in the entire session -- twenty times the normal handle of 482,000 shares.
Several readers pointed this out earlier on Tuesday. For list of MNI's institutional investors, click here. I'll bring you the information when I learn the details.
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9 comments:

Anonymous said...

MNI announced their proxy statement and shareholder meeting which will be 20 May. If you are a MNI class A shareholder, there is no need to vote your shares. They are meaningless, but reading about the directors up for election is kind of comical.

http://www.sec.gov/Archives/edgar/data/1056087/000119312509068960/0001193125-09-068960-index.htm

McClatchy Watch said...

Frustrating, I can't find the info at that link.

Anonymous said...

Strange, take me right to it. Try this one and go to SEC Filings in the column on the left.

http://online.wsj.com/quotes/main.html?symbol=mni&type=usstock%20usfund&mod=DNH_S

If that fails you might just go to Edgar online and search MNI. It will be the most recent filing.

McClatchy Watch said...

Got it, thanks.

Anonymous said...

I tried to read those Edgar pages, and I am just too far back in the old investment game to struggle with this stuff. That's what being broke does for you. I am going to start backing the English only group.

Anonymous said...

If someone dumped 9.8 million shares, doesn't there have to be someone who bought those shares? Who would buy MNI stock at any price, especially that many shares?

Anonymous said...

"If someone dumped 9.8 million shares, doesn't there have to be someone who bought those shares? Who would buy MNI stock at any price, especially that many shares?"The NYSE, where MNI is traded, works as an auction. That is, the price of an issue is determined by people offering to sell shares at some price and waiting to see if anyone accepts. If no one accepts, the seller can lower the price until someone does. To make this work efficiently, the NYSE uses specialists who man the kiosks you see in pictures of the exchange floor. There brokers with sell orders in a particular issue go to offer those issues for sale. At the same time, brokers with orders to buy go to the specialist's kiosk to buy. Each issue is assigned to only one specialist. That avoids confusion on the floor and confusion among the computers trying to execute trades. Once at the specialist, if there is a mismatch between buyers and sellers, the specialist is expected to make up the difference. He or she either buys or sells to complete the transaction. That means the specialist must have an inventory of both cash and the issues in which he or she is the specialist. And he or she either doles out money or stocks depending on which side of the tranaction he or she has to enter. In today's NYSE, the specialist doesn't actually hand out cash, he or she cuts EFTs to the respective brokers, but still the specialist has to have adequate capital to keep the flow of trading going smoothly.

On the NASDAQ, there is no exchange floor. Just a bunch of computers. However, there are speciailists although they are called market makers who man their own trading computers. The market makers on the NASDAQ actually pass each transaction through their computers unlike the NYSE where if there are equal numbers of buyers and sellers, the specialist just sits back and works as an auctioneer.

In the case you ask about, if there was no buyer willing to buy 9.8 million MNI shares, the specialist for MNI had to buy them.

HTH
Walt-in-Durham

Anonymous said...

Gary has "seen the light" and is getting the heck out of Dodge.

Anonymous said...

-- it could be a Short Covering --

say Walt- did the N&O get the

lacrosse rape scandal right

on the money

in their first stories ?