|James E. Kofman|
Inbound board members include long time M&A expert James Kofman, well known Canadian TV personality & journalist Allan Gregg and Roger Hammock, a Zenn shareholder possessing over 1mil shares of Zenn stock.
I've been doing a little bit of research about Zenn shareholders recently. I'm not an expert nor would I sugggest this research is scientific. But I learned some interesting things. First of all, there aren't very many institutional shareholders of Zenn: less than 10%. In many cases, institutional ownership of a company exceeds 50% and sometimes it is as much as 90%. In Zenn's case, 90% is held by individuals like you and me. Furthermore, many similarly sized companies often have far fewer than 1000 shareholders. In Zenn's case, there are well over 10,000. I asked a money manager about this. He said it would not be unusual for a company worth a billion dollars to have that many shareholders. It is extremely rare for a company Zenn's size to have that many investors. Ahem.
I asked him why he thought more institutions don't own Zenn. He said for the most part, it is too controversial. His opinion was that the current stock price of Zenn reflects a 2% chance that EEStor is real. Yet, he owns the stock personally but doesn't recommend it to his clients. He knows others in his line of work in the same position--owning but not recommending. The upside is what is interesting. The possibility of losing it all combined with the strong lack of information surrounding the venture is what prevents it from being recommended. If you look at the big picture, this is pretty much a common sense attitude--the sort of thing we've heard many times over the past couple of years following this story. The good news is that if some of this information causes you to realize your investment in Zenn is a little bit nutty, there are at least 10,000 people equally nutty.
Disclosure: I have a long position in Zenn. Additionally, I am crazier than you and portray myself on the Internet with a bag on my head: not a recommended trait of people from whom you should take financial or investment advice.