This is from the WSJ, 6-3-96
Presstek Chairman and Son Register Big Sale of Shares
Presstek Inc. Chairman Robert Howard and his son
Lawrence registered to sell a large part of their stake in the
highflying printing company, whose volatile stock trading is
under close regulatory scrutiny.
It follows a wave of profit-taking by the senior Mr.
Howard, who has sold $17 million in shares over the two
years before the registration, half of it in the past three
months alone, according to CDA/Investnet, a Fort
Lauderdale, Fla., database that tracks insider activity.
In their latest move, the senior Mr. Howard and his son,
who is a Presstek director, registered to sell 125,000
shares apiece, valued at a total of $40 million at current
market prices. Lawrence Howard sold $10 million of
Presstek in 1995, according to CDA.
...
The SEC for more than a year has been examining unusual
trading in Presstek, which is based in Hudson, N.H., for
evidence of a possible manipulation of the stock, which has
astronomical valuations relative to the rest of the market.
...
According to people familiar with it, the SEC inquiry has
stepped up in recent months, with several new subpoenas to
traders and others connected to the stock. The National
Association of Securities Dealers also periodically has been
examining Presstek trading in the past 18 months.
But for many short-sellers, whose losses have piled up as
the stock has soared, the regulators aren't doing nearly
enough.
The company has disclosed that it received subpoenas from
the SEC in the investigation, which also has taken a close
look at market-makers who trade the stock. Robert
Howard says he hasn't been told that either he or the
company is the target of the SEC investigation.
He said his heavy recent selling doesn't mean he believes
Presstek stock is overvalued. The sales "represent a small
portion of my holdings, and I'm 73 years old," Mr. Howard
said. He said he has been selling to leave his survivors with
enough cash to pay his inheritance taxes. He owned
1,469,224 Presstek shares and exercisable options on
Feb. 29, or 9.5% of the company, according to recent SEC
filings. His son had a 9.2% stake. |
