Sparton (SPA) Higher As Share Overhang Removed

Shares of Sparton Corp. (NYSE: SPA) jumped 10% today on heaver-than-normal volume following the disclosure of an important share sale which suggests that the selling overhang in the stock has been removed.

An SC 13G filing detailed that on January 12, 2010 Firstbank Corporation disposed of 602,170 shares of Sparton common stock, and that the bank now has 1,083,792 shares, or 10.89% of all outstanding.

The shares sold by Firstbank were acquired through foreclosure on loans it had made to Sparton's ex-Chairman, Brad Smith. The remaining shares disclosed by Firstbank are held by the John J. Smith Trust and are still controlled by the Trust but are collateral for apparently performing loans to the Trust by Firstbank.

Sparton, a provider of complex and sophisticated electromechanical devices, has seen its shares reach a 52-week high today with the news.

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