SEC 13G/A Filing for SRZ: Jamie Lester & Soundpost Partners

Soundpost Partners and Jamie Lester have filed their latest share holding in SRZ

Reported Date: Jan 16,2009 (Actual Date Dec 31,2008)
Soundpost Partners: 3,900,000 (7.7% of share capital)
Jamie Lester : 3,900,000 (7.7% of share capital)

Here is the link to the official document

It is important to know that originally Soundpost partners and Jamie lester each held close to 9.8% (ie 19.6% of equity capital) on Nov 17,2008

Reported Date: Nov 20,2008 (Actual Date: Nov 17,2008)
Soundpost Partners: 5,016,350 (9.8% of share capital)
Jamie Lester : 5,016,350 (9.8% of share capital)

Here is the link to the official document

So Jamie Lester and Soundpost partners have sold close to 2,232,700 (2.2 million) shares from Nov 17 to Dec 31,2008 so ideally they should have a negative view about the stock.. but one must understand that Jamie Lester and Sounpost partners hold close to 7,800,000 (7.8 million) even after Dec 31,2008

- I would conclude that Jamie and Soundpost partners are more positive about the stock than negative about the future of SRZ. (as they still hold 7.8million shares 78% of original holding)

Well lets see what happened Around this period:
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Nov 13,2008: 1.5 million shares allocated to Mark Ordan (1.5 million options at 0.92) Document Link

Nov 19,2008: (Actual Date: Nov 19,2008)
SRZ management changed the trigger for "Acquiring Person" from 20% of shares to "10%" of share capital. SRZ Management can automatically issue new Rights shares to everyone other than the 10% "Acquiring" person (basically to prevent any one to attempt a takeover of the company when its vulnerable) Link

Nov 20,2008: (Actual Buy Date: Nov 17,2008)
Soundpost Partners, LP - 5,016,350 (9.8% of capital)
Jaime Lester - 5,016,350 (9.8% of capital)

Dec 4,2008: (Actual Buy date: Dec 2,2008)
Weiss Multi-Strategy Advisers LLC: 4,800,000 shares (9.4% of capital)
George A. Weiss: 4,800,000 shares (9.4% of capital)
Frederick E. Doucette III: 4,800,000 shares (9.4% of capital)
Weiss Multi-Strategy Partners LLC: 2,554,006 (5.01% of capital)

Jamie Lester,George Weiss & Frederick Doucette hold more than 50% of equity capital of SRZ.

Dec 10,2008: (Actual Date: Nov 30,2008)
EARNEST Partners, LLC: 240 shares

Dec 15,2008: (Actual Date: Dec 9,2008)
John F. Gaul SRZ Company's General Counsel to leave the company on Feb 27,2009

Dec 24,2008: (Actual Date: Dec 23,2008)
Nadeau Richard John (Chief Financial Officer)750,000 stock option at 1.37 per share
Pangelinan Julie Anne (Chief Accounting Officer)500,000 stock option at 1.37 per share

Dec 24,2008: (Actual date: Dec 18,2008)
Standstill Agreement between NATIXIS & SRZ

Dec 29,2008: (Actual date: Dec 18,2008)
Schwartz Daniel (SVP, North American Operations) 200,000 stock option at 1.37 per share

Dec 30,2008: (Actual Date: Dec 18,2008)
NEEB D GREGORY (Chief Investment Officer) 500,000 stock option at 1.37 per share
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- Looks like there was accumulation of shares by few players in SRZ.

- SRZ management changed the rules of a definition of "Acquiring Person" status from 20% to 10% and then asked the major share holders to report their intentions.. (all of them stated that they donot intend to change the management)

- A lot of options have also been granted during this period 3 million options.

- One of the major share holders has reduced his stake from 19.6% to 15.4%.

My conclusion:
- Massive movement of wealth (denoted by transfer of SRZ shares) has happened during this period and significant holdings have been acquired by a few players.

- Selling of close to 2.2 million shares when the short have been close to 5 million indicate that this 2.2 million shareholder could also be the person holding the shorts.. (my speculation only)

- Going forward ..we must observe the shorts and my belief is that we can expect the shorts to reduce significantly and the price appreciation will also follow along with the positive financing news.

Next week (Jan 20 to Jan 23) a short week could be a great week for SRZ share holders.