Nelson Obus‘ Wynnefield Capital has initiated a position in Global Power Equipment Group Inc (NYSE:GLPW) by acquiring some 2.19 million shares through its affiliated funds. The stake, which comprises 1.07 million shares that are held directly by the firm and 1.13 million shares held indirectly, amasses about 12% of the $112.30 million company’s outstanding shares. The transactions were carried out between July 17 and July 21
Wynnefield Capital was established in 1992 with the aim of concentrating on small-cap companies which have an industry specific catalyst. Although the firm has quite a few activist stakes to boast, it refrains from hostile takeovers and battles with the boards of directors of companies. Obus was in the news last year with regards to insider trading allegations, which he successfully defended in a two-week trial. Currently the firm has about $309 million in regulatory assets under its management.
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Operating in three segments, namely Product Solutions, Nuclear Services, and Energy Service, Global Power Equipment Group Inc (NYSE:GLPW) provides customer-engineered equipment, and modification and maintenance services. The industrial company’s stock fell by over 33% on May 7 when the company announced a delay in the reporting of its first quarter financial results, and an intention to restate its results for the fiscal year 2014 due to accounting errors found by the Audit Committee. In this connection, various law firms are seeking shareholders who acquired Global Power Equipment Group Inc (NYSE:GLPW)’s stock between March and April to appoint them as lead plaintiff. The complaint alleges that the company understated its cost of sales for the fiscal year 2014, that it lacked internal controls over its financial reporting, and hence mislead investors.
