Kaypro Stock Jumps $1.38 in High Volume
Financially troubled Kaypro, which has seen its stock languish at $1.50 for several months, benefited from a trading flurry that began Thursday and pushed the price up $1.38 to $2.88 per share at the close of trading Friday.
The activity, which saw 448,800 shares change hands and ran the price to a temporary high of $3 on Friday, led to speculation by industry analysts that Kaypro might be returning to profitability--or has become the target of a takeover attempt or an effort by the Kay family to take the company private.
“We’ve heard from all the different brokerage houses who have said their clients are calling them and expressing a high level of interest in the Kaypro PC,” said Kaypro Controller Robert Gorski, who credited the upswing to “recent favorable product reviews” in a pair of computer publications.
However, Gorski said that two stock brokerage firms had called to check on the possibility that the Kay family, which owns nearly 75% of Kaypro, wanted to take the company private.
“I’m not aware of any action or plan like that,” Gorski said.
Three members of the Kay family--Chairman Andrew Kay, President David Kay and Vice President Allan M. Kay--hold 74.8% of the company’s stock.
PC Reviews Downplayed
Although computer industry analysts suggested that Kaypro’s recently introduced Kaypro PC has been well received, they downplayed Gorski’s suggestion that favorable reviews caused the heavy volume and near doubling of Kaypro’s stock price.
“Only two things--a takeover or news of an immensely profitable quarter” could cause that kind of movement,” suggested Richard J. Matlack, president of Infocorp, a Cupertino-based market research company. “I haven’t heard rumors of either, but reviews alone wouldn’t account for that kind of volume.”
Kaypro, which reported a $2.5-million net loss for the first quarter ended Nov. 29 and a $15.5-million net loss for the fiscal year ended Aug. 31, will not report results for the second quarter ended Feb. 28 until April, according to Gorski.
“I can’t figure it out,” acknowledged Irving Katz, an analyst with San Diego Securities. “It’s been sitting at $1.50 since before January and has hardly moved anywhere. Then (on Thursday and Friday) volume mushroomed to 448,800.”
