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Technology Stocks : Cymer (CYMI)

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To: Gerald Egan who wrote (3182)9/25/1997 10:05:00 AM
From: D. K. G.   of 25960
 
Re: Form 144 is the intent to sell restricted stock some time in the near future. Form 4 is the actual sale or purchase of the company's stock. So I guess the transaction of the actual sale of stock hasn't happened yet for the 144. Insiders have to report by the 10th of the month(I think).
There was significant insider sales of CYMI back in May/June
of this year with no significant impact on the stock.

Tips on interperting insider activity:

Insider buying is more significant than insider selling. There are numerous legitimate reasons for executives
to sell shares. Buying a new house, sending kids to college, or simply diversifying assets are just a few. It is
very common to see a lot of selling in a high-flying stock, and for that stock to keep rocketing. In contrast,
there is generally only one reason executives buy their company's stock: they expect to make some money.

Insiders tend to be early with their transactions. A multimillion dollar investment by several insiders in their
beaten-down stock does not necessarily mean they expect it to recover next week. It is more an indicator of
longer-term value.

Insiders closest to day-to-day operations are the most important to watch. These include the chairman,
president, CFO, vice presidents, and directors.

Beneficial owners and large shareholders are generally codes for large entities or partnerships. These insiders
can be responsible for the largest trades in terms of dollar values, but they are generally less significant
because they are usually part of a corporate transaction where the individuals making the investment decision
don't necessarily stand to suffer if the investment fails.

It is always more significant when more than one insider trades. A "cluster" of activity gives a sense of
unanimity of opinion regarding a company's prospects.

Options-related trades are less significant than open-market transactions. It means a lot more when insiders
invest their savings than when they simply reap the benefits of buying shares at below market prices and
immediately selling them for a profit. This is why InsiderTrader's summaries only include open-market
transactions.

above source is from insidertrader.com

Denis
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