Phil Frohlich‘s Prescott Group Capital Management reported in a new filing with the SEC, that it has purchased some more shares of China Marine Food Group Ltd (OTCMKTS:CMFO), as it has been doing for some time now. In the new round of purchase of China Marine Food Group shares, Prescott acquired 34,667 shares, the price varying between $0.19 and $0.23 per share for each of the five transactions.
China Marina Food Group is currently trading on the OTC Pink Market, moving from the NYSEMKT where it traded previously. The company has decided to delist from NYSEMKT earlier, and at the beginning of the month the company filed the required forms with the Securities and Exchange Commission, which confirmed its volunteer delisting and deregestiring from Section 12(b) of the Exchange
This move made by China Marine Food Group comes as a solution meant to reduce operational costs of the company, since it will no longer be liable for reporting with the Securities and Exchange Commission. The company also plans to focus more on gaining long-term value instead of focusing on short-term issues related to its market value.
Prescott with its focus on small- and mid-sized companies is the largest hedge fund invested in China Marine Food Group so far, according to our records. Aside from it, Renaissance Technologies, led by Jim Simons is also bullish on the company, however, his position is insignificant in comparison with its whole equity portfolio and the stock held by Prescott.
In addition to China Marine Food Group, Prescott also recently disclosed a move made into PharmAthene, Inc. (NYSEMKT:PIP). Prescott holds an activist stake in the company, equal to 10% of the outstanding stock. Since holders of activist stakes tend to take a brush stroke to the company’s management, Frohlich is no exception to the rule, and recently asked for shareholders of the company to meet and discuss some important issues related to the company.