Today our broker, who used to be very agnostic on PRST but now is a
believer pointed out that yes, the director of PRST, Robert Howard,
did sell 66,000 shares from 4/03/96 to 4/16/96 -- BUT THAT BRINGS HIS
HOLDING TO 1,041,724 SHARES!
On 5/28 he filed, as Jack Lynch noted, to sell some additional shares,
this time 125,000.
I can think of many unalarming reasons to sell shares, especially by
officers of a company only newly prosperous; but of course there could
be alarming ones too. Most reassuring is Lutts's lack of concern. Of
course, I start with the conviction that he is not a con-artist, but
an an honest analyst who believes what he is saying. He could be
illuded, but I'm sure he's not dishonest. I'd be very interested in
Jack Lynch's analysis of insider selling. Jack, please include how
many shares they have left. (Some sold all, I understand.) Other
interesting information would be: what the salary of each is; do they
periodically receive additional shares as part of their annual
remuneration or bonuses; how old they are (this sounds odd, but if
you're getting on in years as most of the guys involved appeared at
the shareholders meeting to be doing, maybe you want to enjoy life a
whole lot, especially if you just recently GOT rich; and what a
comparison would look like of what's happening in the case of PRST,
a newly-prosperous evidently very high-potential company, with what
has happened to other similarly situated companies.
Jack, I know I've made a completely unreasonable request here. But I
do think that all these things do count in some way. I'd be grateful
for whatever analysis and information you do come up with.
I wish someone knew Lutts personally and could get him to address the
insider selling question substantively. I sent him a fax a few weeks
ago (I subscribe to his fax service) expressing concern about this
very subject. I got a handwritten note back saying simply that
insiders still own a HUGE number of shares, that there was no cause
for concern here. (Jack, how many shares DO insiders hold aggregately,
in comparison to the number sold?) Also I wish Lutts would address
the institutional selling (Oxley Foundation).
Maybe the temptation to take profits is just too great after such a
run up, especially if, as is the case with these guys, you've been in
for several years. Maybe nothing about the future of the company is
implied. Maybe they want yachts, mansions, and to get out of an HMO.
--Jason's Mother |
