On Dec. 7, 2010, Discovery Education, a division of Discovery Communications, announced that Louisiana and Indiana had joined Oregon in adopting the Discovery Education Science Techbook as a digital core instructional resource for elementary and middle school science instruction. https://www.discoveryeducation.com/aboutus/newsArticle.cfm?news_id=663
Thanks to a sharp-eyed researcher, Sissy West, who writes a blog opposing the Common Core curriculum, we have learned that on Nov. 30, seven days before the deal between the state and Discovery Education was made public, State Sen. Conrad Appel (R-Metairie) purchased Discovery Communications stock, according to financial disclosure records filed with the State Ethics Board. http://nomorecommoncorelouisiana.blogspot.com/2014/03/crisis-of-confidence.html
Appel is a major proponent of education reform in Louisiana, including the controversial Common Core curriculum.
He also is Chairman of the Senate Education Committee and was in a unique position to know not only of the pending deal between Discovery Education and the Louisiana Board of Elementary and Secondary Education (BESE) as well as the company’s agreement with Indiana and Oregon, as well as Texas and Florida.
The Discovery Education Techbook is touted as a “Core Interactive Text” (CIT) that “separates static text from a fully digital resource.” http://www.discoveryeducation.com/administrators/curricular-resources/techbook/K-8-Science-digital-textbook/index.cfm
Appel’s financial disclosure form indicates his Discovery Communications stock purchase was between $5,000 and $24,999. APPEL REPORT PDF
Discovery Communications is traded on NASDAQ and on the date of Appel’s purchase, the company’s shares opened at $40.96 and closed at $40.78.
And while there was no significant movement in the stock’s prices on the date of and the days following Discovery’s announcement of the agreement with BESE, the stock hit a high of $90.21 per share on Jan. 2 of this year, meaning Appel’s profit over a little more than three years, on paper, was in excess of 100 percent. Put another way, he doubled his investment in three years. The stock closed on Thursday (March 27) at $75.72, still an overall gain of 85 percent Appel.
The most significant thing about Appel’s Nov. 30, 2010, purchase of the Discovery Communications stock is the volume of shares traded on that date. More than 7.5 million shares of Discovery Communications stock were traded that day, more than double the next highest single day volume of 3.1 million shares on Aug. 1, 2011. Daily trading volume generally ran between 1.1 million and 1.9 million shares in a monthly review from December 2010 through March of this year. http://finance.yahoo.com/q/hp?s=DISCA&a=10&b=30&c=2010&d=02&e=28&f=2014&g=m
While there is no way to know with any certainty, it is possible that the Discovery Education’s Techbook deals contributed to the surge of trading activity on Nov. 30.
Appel’s 2012 financial report reveals that he also purchased between $5,000 and $24,999 of Microsoft stock on June 4, 2012, the same date that the Louisiana Legislature adjourned its 85-day session. MICROSOFT
Ten days earlier, on May 25, the Louisiana Legislature approved the implementation of Common Core in Louisiana after the Bill and Melinda Gates Foundation poured more than $200 million to develop, review, evaluate, promote and implement Common Core.
And while no one is suggesting that Appel is involved in any type of illicit behavior or insider trading, the timing of his stock purchases might raise a few eyebrows. It could appear to some as more than coincidental—and ill-advised—that such transactions and official state actions would occur in so close a timeframe not once, but twice, and would involve a single individual who promoted Common Core legislation and who served as chairman of a key legislative committee that dealt with education issues.
Perception, as they say, is everything.