Volume Spike Investor

CKX, Inc. (NASDAQ: CKXE) has seen an exponential volume alert today, and the company is attributing the exponential volume rise and the price drop to an error reported by Dow Jones.  The company issued a statement “correcting the factual errors in an article that ran on the Dow Jones Newswires late in the afternoon on Wednesday, October 14.”

CKX said it is not selling any shares of common stock to the public at this time. CKX noted that Chairman/CEO Robert F.X. Sillerman recently sold 7.85 million of his personally owned shares to a well-known investment fund at a price of $6.75 per share.  In order to allow the purchaser to obtain shares that are freely tradable, the Company agreed to register the shares with the SEC. The registration statement that was filed on Wednesday, and on which the inaccurate Dow Jones Newswires report was apparently based, was merely registering the shares purchased from Mr. Sillerman. It did not indicate a sale by the Company of any shares of stock.   Further, CKX has noted that the $6.26 per share price quoted in the Dow Jones report has no bearing on any sale price of CKX’s stock. It has nothing to do with the price at which Mr. Sillerman sold the stock, which was $6.75 per share.

At 1:33 PM EST we have seen 864,000 shares trade hands, compared to a normal day’s volume of about 125,000 shares.  The shares are down some 3% at $6.46 on the day.

Attached is a copy of that S-3 Filing with the SEC that was the source for the error.  That $6.26 price was listed in the filing, but it was an estimated price based around October 7.

JON C. OGG
OCTOBER 15, 2009