Southmark Corp (fka SMRK)

[Enterprising Investor]

Liquidity is an issue.

A&B Capital was the owner and holder of a total of 965,541 shares of SMRKP (which constitutes approximately 34.1% of the 2,831,997 shares) and a total of 7,346,114 shares of SMRK (which constitutes approximately 20% of the 36,761,096 shares presently outstanding) at 5/20/00. The 965,541 shares of SMRKP would have been converted into 682,799 shares of SMRK, giving the investor 8,028,913 shares.

According to the information filed with Texas SOS on 10/31/06, A&B now owns 50.04 percent or about 30,776,812 shares. I suspect that A&B has been buying a high percentage of the shares available on days SMRK traded over the years.

I would like to find out why? But first, I am off to do some math...