Sulja Bros. Building Supplies, Ltd (SLJB)

[phxgold]

INVESTMENTS IN EQUITY SECURITIES
The Company’s investments in equity securities consist primarily of ownership of approximately 7.9 million common shares of Knight Capital Group, Inc. (“Knight”), representing approximately eight percent of Knight’s outstanding common shares as of December 31, 2005. The Company accounted for its investment in Knight as a marketable equity security available-for-sale. As of December 31, 2005 and September 30, 2005, the Company’s investment in Knight was valued at $78.2 million and $65.7 million, respectively. The Company’s cost basis was $0.7 million; therefore the gross unrealized gain was $77.5 million and $65.0 million at December 31, 2005 and September 30, 2005, respectively, which is reflected in other comprehensive income, net of taxes, on the Condensed Consolidated Balance Sheets. The Company liquidated its position in Knight and the prepaid variable forward contracts described below in January 2006, resulting in a one-time pre-tax net gain of approximately $79 million that will be recorded in the fiscal quarter ending March 31, 2006.
During fiscal 2003, the Company executed a series of prepaid variable forward contracts on the Knight shares. Before the recent liquidation, these forward contracts were scheduled to mature on various dates in fiscal years 2006 and 2007. The forward contracts each contained a zero-cost embedded collar on the value of the Knight shares, with a weighted average floor price of $5.13 per share and a weighted average cap price of $6.17 per share. As of December 31, 2005 and September 30, 2005, the total fair value of the embedded collars was approximately $32.1 million and $20.4 million, respectively, and was included under the caption “Prepaid variable forward derivative instrument” on the Condensed Consolidated Balance Sheets. Changes in the fair value of the embedded collars are included under the caption “Unrealized fair value adjustments of derivative instruments” in the Condensed Consolidated Statements of Operations.
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Table of Contents

The following table summarizes the Company’s investments in equity securities, liabilities associated with the prepaid variable forward contracts, and related deferred income tax effects:

December 31, September 30,
2005 2005 Difference
Assets
Investment in Knight $ 78,204 $ 65,710 $ 12,494
Investment in International Securities Exchange, Inc. 3,109 2,644 465

Total marketable equity securities 81,313 68,354 12,959
Other investments 221 221 —

Total investments in equity securities $ 81,534 $ 68,575 $ 12,959

http://sec.gov/Archives/edgar/data/1173431/000095013706001510/c02288e10vq.htm

as far as news its the headlines everyone should get under the quotes or on you streamer. just sljb headlines have been suspiciously absent especially since it states that ameritrade uses market watch for quote and news data. and marketwatch posts the headlines on their site.

combine that with knight slamming this down every chance he can and ameritrade playing games with our shares yesterday it seems to me as if collusion may be easy to prove especially since they have been convivted of doing it before together.

http://securities.stanford.edu/1029/AMTD03-01/index.html