IBJNews

Fortune can't explain 'significant and unusual' stock swing

Back to TopCommentsE-mailPrintBookmark and Share

Fortune Industries Inc.’s thinly traded stock rarely gets much attention. Shares of the Indianapolis-based personal employer organization seldom move more than a few pennies on a daily basis.

Until Monday, that is, when the stock jumped as much as 285 percent from Friday’s closing price and trading volume shot through the roof.

Fortune shares rose from 20 cents each at the end of Friday to a high of 77 cents on Monday before closing at 49 cents, an increase of 145 percent.

More than 2.8 million shares changed hands Monday, up from a daily average of 52,000 over the past three months.

The New York Stock Exchange found the trading so “significant and unusual” that it asked the company to issue a press release to explain the activity.

“Ordinarily, it is the company's policy not to comment on unusual market activity, but the company has confirmed that it is not aware of any explanation beyond its most recent [SEC] filings for the high volume or unusual price activity of its shares today,” Fortune said in a prepared statement.

Those March 8 SEC filings dealt with Fortune’s plan to go private through a $13.3 million buyout offer by the firm’s top two executives.

The plan, detailed in another public filing in February, calls for an acquisition by CEP Inc., a holding company led by Fortune Industries CEO Tena Mayberry and Chief Financial Officer Randy Butler.

The filing says the two will pay $7 million in cash and the remaining $6.3 million with a promissory note to acquire common and preferred shares held by the estate of company founder Carter Fortune, who died in August.

CEP would be based in Nashville, Tenn.

Founded in 2000, Fortune has shifted its focus in recent years from a diversified holding company to a professional employer organization. It has clients in 47 states.

Fortune shares were up 4 cents Tuesday morning, to 53 cents each.




 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. I am not by any means judging whether this is a good or bad project. It's pretty simple, the developers are not showing a hardship or need for this economic incentive. It is a vacant field, the easiest for development, and the developer already has the money to invest $26 million for construction. If they can afford that, they can afford to pay property taxes just like the rest of the residents do. As well, an average of $15/hour is an absolute joke in terms of economic development. Get in high paying jobs and maybe there's a different story. But that's the problem with this ask, it is speculative and users are just not known.

  2. Shouldn't this be a museum

  3. I don't have a problem with higher taxes, since it is obvious that our city is not adequately funded. And Ballard doesn't want to admit it, but he has increased taxes indirectly by 1) selling assets and spending the money, 2) letting now private entities increase user fees which were previously capped, 3) by spending reserves, and 4) by heavy dependence on TIFs. At the end, these are all indirect tax increases since someone will eventually have to pay for them. It's mathematics. You put property tax caps ("tax cut"), but you don't cut expenditures (justifiably so), so you increase taxes indirectly.

  4. Marijuana is the safest natural drug grown. Addiction is never physical. Marijuana health benefits are far more reaching then synthesized drugs. Abbott, Lilly, and the thousands of others create poisons and label them as medication. There is no current manufactured drug on the market that does not pose immediate and long term threat to the human anatomy. Certainly the potency of marijuana has increased by hybrids and growing techniques. However, Alcohol has been proven to destroy more families, relationships, cause more deaths and injuries in addition to the damage done to the body. Many confrontations such as domestic violence and other crimes can be attributed to alcohol. The criminal activities and injustices that surround marijuana exists because it is illegal in much of the world. If legalized throughout the world you would see a dramatic decrease in such activities and a savings to many countries for legal prosecutions, incarceration etc in regards to marijuana. It indeed can create wealth for the government by collecting taxes, creating jobs, etc.... I personally do not partake. I do hope it is legalized throughout the world.

  5. Build the resevoir. If built this will provide jobs and a reason to visit Anderson. The city needs to do something to differentiate itself from other cities in the area. Kudos to people with vision that are backing this project.

ADVERTISEMENT