Company Says: We Don’t Know What’s Going On
Earlier today we put together an update on one of the popular penny stocks taking over message boards and social media today, Liberty TripAdvisor (LTRPB Free Report) (LTRPA Free Report). Shares soared from a close on April 14 of $4.51 to highs on the 15th of $134; a run of more than 2,800%. But the problem: no news, no filings, and all speculation.
Read Our Full Update: Penny Stock Liberty TripAdvisor Climbed 2,871% In A Day; How?
The most recent update from the company came in the form of a request for shareholder meeting filed on April 13. On May 19 the shareholder will vote on several topics including:
- A proposal (which we refer to as the election of directors proposal) to elect Chris Mueller and Albert E. Rosenthaler to continue serving as Class II members of our board until the 2023 annual meeting of stockholders or their earlier resignation or removal;
- A proposal (which we refer to as the auditors ratification proposal) to ratify the selection of KPMG LLP as our independent auditors for the fiscal year ending December 31, 2020; and
- A proposal (which we refer to as the reverse stock split proposal) to approve the adoption of an amendment to our Restated Certificate of Incorporation to effect a reverse stock split of our common stock at a ratio of at least 1-for-2 and up to 1-for-20, with the exact ratio within the foregoing range to be determined by our board of directors (or a committee thereof) and publicly disclosed prior to the effectiveness of the reverse stock split.
Could any of these (including a proposed reverse split) be a catalyst behind this recent move for Liberty TripAdvisor stock?
Here’s What Liberty TripAdviser Had To Say
In light of this big move, of course the company had to address it. Was it a ground-breaking development or some mind-blowing corporate event? Well, unlike some may want to hope for, the company’s response was as useful as no update at all, in my opinion. Here’s what they had to say:
That’s right. In so many words, the company explained that there weren’t any secrets disclosed, and that the company isn’t aware of any trades being made by its officer directors. At the end, the company essentially says they wanted everyone to know, that they know there’s weird action. But they also wanted to market to know that they don’t know why.
So What DO We Know Right Now About Liberty TripAdviser?
Aside form the proxy, we do know a few other things about Liberty TripAdviser. Mainly, we know what it agreed to at the end of March.
In March, the company entered into an agreement with Certares Management LLC where Certares will purchase $325 million of 8% Series A Cumulative Redeemable Preferred Stock. Certares has a long list of travel-related names it has invested in. It was also founded by Greg O’Hara.
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He’s got a long list of achievements under his belt including Chief Investment Officer of JPMorgan Chase’s Special Investments Group, Executive Chairman of American Express Global Business Travel and …. drumroll please…Vice Chairman of Liberty TripAdvisor Holding.
In any case, by the end of the day, Liberty TripAdvisor stock ended up dropping hard at the end of the day. Can it attempt to recover this week? That’s just one more question to add to the list. As we said in our previous update, we’ll say here: Are there rumors floating around that are unconfirmed?; is there confusion between what TRIP is doing and what Liberty TripAdvisor is doing?; what has sparked the initial run for LTRPB specifically?
Let us know in the comments below.