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Royalty trusts can provide steady streams of income to investors.
However, if the oil company has problems delivering oil, it can
be devastating for investors in a royalty trust.
BP Prudhoe Bay Royalty Trust (BPT) is a publicly-traded royalty
trust headquartered in New York. New York is a long way from
Prudhoe Bay. Pipelines don’t have problems in New York, but they
can in Prudhoe Bay and maintenance is critical. Executives in
New York are worried about bonuses and options. Investors and
citizens of Alaska are worried about steady production and pollution.
In August of this year, a big problem was disclosed – the possibility
that the Prudhoe Bay pipeline might be shut down. It is alleged
that BP has been aware of problems with the pipeline for sometime.
On August 4, 2006, before this revelation, the price of BPT closed
at $87.89. After a series of startling disclosures on August 6 and 7,
the price of BPT dropped. By August 8, 2006, BPT shares closed
at $73.61 per share. By September, the price of BPT had declined
to $67.25 as a result of continuing troubling disclosures concerning
the Company’s conduct. It appears that investors who purchased
the BP Prudhoe Bay Royalty Trust between March 15, 2006 and
August 4, 2006 are affected.
Problems for Presstek Investors
Presstek, Inc. (NASDAQ: PRST) engages in the design, manufacture,
sale, and service of digital imaging equipment and consumables-based
solutions to the graphic arts and printing industries.
On July 27, 2006, Presstek announced its financial results for the
second quarter of 2006, and stated it would reach its 10% annual
revenue growth target for 2006. But, several months later, there
was a late night announcement. Specifically, at 12:05 a.m. on
September 29, 2006, the Company disclosed its preliminary financial
results for the quarter ended September 30, 2006, which revealed
that Presstek did not expect to reach its previously projected
10% annual revenue growth target for 2006. As a result, the price
of Presstek stock dropped sharply, opening at $4.95 a share at the
start of trading on September 29, down $1.28 or 20% from the
previous day’s closing price of $6.23 a share.
Investors who purchased stock between July 27, 2006 and
September 29, 2006 are affected.
Another Company with Backdating Options Difficulties
Apollo Group, Inc. (NASDAQ: APOL), through its subsidiaries,
provides higher education to working adults. The company offers
associate degrees in business, criminal justice, general studies,
health administration, and information technology.
On June 19, the Phoenix education provider received a subpoena
from the U.S. attorney for the Southern District of New York
relating to stock-option grants. Previously, the Company indicated
that its board will hire an outside firm to review its stock-option
practices, following a brokerage report that raised questions about
whether the for-profit educational firm had backdated some past
options grants. Later, on July 10, the Company disclosed that it
had received a letter from the SEC about an informal investigation
into its stock-option grants.
On October 18, 2006, the Company said its review of stock option
practices shows that "various deficiencies in the process of granting
and documenting stock options have been identified to date."
The market reaction was swift. In heavy trading, Apollo shares fell
$6.78 to $41.90 on October 18, 2006. It appears that investors who
purchased stock between March 29, 2002 and October 17, 2006,
are affected.
If you are an affected shareholder in BP Prudhoe Bay Royalty Trust,
Presstek, Apollo Group or any of the companies listed below
(details available at www.securitiessleuth.com), you may wish to
contact us at info@securitiessleuth.com or 877.511.4717 to discuss
your options.
Aspen Technology Inc. (AZPN).
CNET Networks (CNET)
Connetics (NASDAQ: CNCT)
Jabil Circuit, Inc. (NYSE: JBL).
Marvell Technology Group (NASDAQ: MRVL),
McAfee Inc. (MFE)
Meade Instruments Corp. (NASDAQ: MEAD)
Now with respect to securities cases that have recently settled. If
you are an affected investor – you purchased any of these stocks
during the relevant class period, you may wish to contact the claims
administrator to obtain additional information. Remember, if you
don’t submit your claim form, you won’t receive your share of
any settlement.
Ask Jeeves (ASKJ)
Class Period: November 18, 1999 to May 16, 2000
Claims Deadline: February 5, 2007
Claims Administrator: Rust Consulting
Broadwing, Inc. (BRW)
Class Period: January 17, 2001 to May 21, 2002
Claims Deadline: November 30, 2006
Claims Administrator: Garden City
Information regarding other recent settled cases, including the
cases listed below can be found at www.securitiessleuth.com.
Advanced Marketing Services
King Pharmaceuticals, Inc.
MasTec, Inc.
McLeodUSA, Inc.
Again you should contact the claims administrator (rather than us).
However, if you are an affected investor in any of the companies
under investigation, you many wish to contact us so that you can
consider your options.
Likewise, if you happen to be aware of corporate restatements or
other financial fraud -- especially if you're a victim -- you're encouraged
to contribute to the Sleuth by giving your own tip-offs at
www.securitiessleuth.com or by e-mailing info@securitiessleuth.com.
You can also call Mark McNair at 877-511-4717. If you have a friend
or colleague you think would benefit from The Sleuth, please pass
along this issue and ask them to sign up at
www.cartville.com/app/join.asp?MerchantID=47994.
Warmest regards,
Mark McNair
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