Martha Stewart is promoting inventory once more — and this time she’s virtually thumbing her nostril at anyone who has a query about it.
As reported by The Submit, the home diva had attracted consideration final month by promoting shares in Sequential Manufacturers Group — two days earlier than Bloomberg reported that the licensing agency was getting ready for a doable chapter submitting.
Stewart — who was a director at Sequential till late March regardless of the actual fact the corporate bought her model in 2015 — cashed out 6,266 shares on June 4 and June 7, netting greater than $67,000 as she bought them at a median worth of $10.78. On June 9, Bloomberg reported that Sequential would possibly resort to Chapter 11 because it negotiates the sale of the Jessica Simpson clothes line again to the pop singer who based it.
Some specialists stated the inventory gross sales didn’t look good — particularly given the five-month jail stint she did in 2004 and 2005 for mendacity about her gross sales of ImClone shares. A lawyer for Stewart responded final week that she had “no advance data” of reports popping out about Sequential, noting that she had left the board greater than two months earlier.
Then on Friday, at some point after The Submit reported on the scenario, Stewart bought one other 10,000 shares — this time at greater than $22 a bit. And on Tuesday, she bought yet one more 10,000-share bloc on the identical lofty worth, in line with a Wednesday submitting. In all, Stewart bagged about $440,000 on the 2 trades.
Sequential shares — which had tanked since Stewart’s first spherical of gross sales — appeared to have gotten a lift on Friday from the Reddit crowd, which noticed the potential for a brief squeeze within the inventory. “$SQBG Quick squeeze potential,” a dealer wrote Friday on Reddit’s WallStreetBets discussion board. “26% quick. Solely 810k float. Straightforward!”
That’s regardless of Sequential’s continued monetary woes. After Friday’s shut, the corporate stated in a regulatory submitting that its capacity to repay its debt has “casts substantial doubt with respect to the flexibility of the corporate to proceed as a going concern.” On Wednesday, the inventory closed at $14.92.
A spokeswoman for Stewart, who nonetheless holds 181,360 Sequential shares, in line with the submitting, didn’t reply to requests for touch upon Wednesday.
Sources near the corporate level out that she stays the one director recognized to have bought her shares and that the transfer might entice regulatory scrutiny, notably since Sequential is anticipated to file for chapter.
“She is poking the bear, which is the SEC,” stated one supply, referring to the Securities and Change Fee.
An SEC spokesperson didn’t instantly reply to a request for remark.