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(240,000 of the 280,507 shares) was sold within 90 days of the date
of decedent's death at prices which did not depress the previous
day's trading price for the stock. He further found support for
his 3.3-percent blockage discount conclusion in the fact that all
the shares were sold within approximately 110 days after the date
of decedent's death at prices somewhat higher than the price before
decedent's death.
Mr. Davis considered the following factors in arriving at his
conclusion: (1) The shares at issue represented 2.2 percent of the
total shares outstanding; (2) relative to Applied Power's daily
trading volume, the size of the Trust's block represented the
number of Applied Power's shares traded during an average 29-day
period during 1993; (3) there were no resale restrictions on the
block; (4) there was moderate volatility with a flat or stable
stock price trend; (5) the size of the trading "float" of the stock
(90 percent of the shares outstanding); (6) the general stock
market trend (which was stable to moderately rising) in 1993; (7)
the stock in issue traded on NYSE; (8) the most recent projected
earnings trend of the company (which was moderately upward); (9)
the market price performance of the stock vis-a-vis the general
stock market; (10) Applied Power's dividend-paying record; (11) the
current outlook for the company; (12) U.S. economic trends; (13)
the number of Applied Power shareholders (558 as of October 31,
1993), including institutions (30); (14) the percentage (60
percent) of institutional ownership of the shares of Applied Power;
and (15) the stock was a marginable security.
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