Glenn, where is Dulong's post? I have looked for a weakening in the
revenue numbers for CSCC, because of the conference call and the sell
off. I think the stock has discounted all of this inside selling,
because the street knows it the second it happens. But why did they
sell?wj
Walter
The article is below. There is an "excuse" for each sale but I can think of many ways for those insiders to accomplish raising the same cash without selling the shares. I am not comfortable with this.
Glenn
Westford, Massachusetts, March 14 (Bloomberg)-- Cascade
Communications Corp. shares fell 7.2 percent on concern that
heavy insider selling could indicate that the company will fail
to reach analysts' forecasts for earnings in the current quarter.
Shares in the maker of computer networking equipment fell
2 1/16 to 26 11/16 in trading of 7.98 million, more than the
three-month daily average of 4.9 million.
Cascade executives including Chairman Desh Deshpande
and Chief Executive Dan Smith sold a total of 509,400 shares
since February 6, at prices ranging from $26.62 to $36.24,
according to filings reported by the Washington Service.
The shares sold by Deshpande and Chief Financial Officer
Paul Blondin were sold from a charitable trust, said Suzanne
Dulong, Cascade manager of investor relations. The two executives
don't decide on dates of transactions nor benefit from the
proceeds, she said.
Other sellers, including Smith and James Dolce, vice
president for remote access, sell shares every quarter as part of
a routine diversification, Dulong said. Vice President of Sales
Michael Champa sold 116,400 shares to help finance the purchase
of a house, she said.
The insider sales added to worries that Cascade might not
meet analysts forecasts for earnings, said Therese Murphy, an
analyst at Smith Barney. The company has already said that a
large proportion of this quarter's sales were coming in the final
weeks of the quarter.
``To find people selling in a March quarter that's already
back-end weighted is not exactly comforting,'' Murphy said.
Cascade Communications shares have fallen more than
58 percent since their peak Jan. 22. The slide accelerated after
Jan. 24, when the company said sales growth in frame relay
switches would be slower than expected this year. Analyst Murphy
said she's expecting first-quarter earnings of 22 cents, down 2
cents from the previous quarter.
``That figure is a best-case scenario,'' Murphy said.
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