Insiders are buying:
Insiders investing in Finova
Bought 40,000 shares in April
By Dawn Gilbertson
The Arizona Republic
May 18, 2000
For the second time since Finova Group's stock
crashed, executives and board members have
bought the stock.
Insider buying is usually viewed as a bullish signal,
a vote of confidence in a company's future, but it
also can be a public relations ploy in times of trouble.
In Finova's case, the buying has been widespread and fairly significant.
Five officials of the Scottsdale-based commercial finance company bought a
total of 40,000 shares last month, investing about $600,000, according to
the Washington Service, which tracks insider buying and selling. April trades
were just released by securities regulators.
The purchase prices ranged from $13 to $16.94. Finova's stock was around
$30 a share before the finance company's double whammy in late March:
the write-off of a $70 million loan and the sudden departure of longtime
CEO Sam Eichenfield.
Shortly after the announcement, five officials, including new Chairman John
Teets, bought a total of 34,300 shares, paying between $16.88 and $20.69
per share.
The big buyers this round were board members James Johnson and Robert
Clark, who bought 20,000 and 10,000 shares, respectively. CEO Matt
Breyne bought 5,000 shares.
Taken together, it's the largest cluster of insider buying in the company's
history, according to insiderscores.com, a Scottsdale company that tracks
insider activity.
Teets, who bought 3,000 shares this round, for a total of 5,000, said last
week that he's buying because "we're tremendously undervalued."
He said he'd like to buy more, especially after the stock plunged to an
all-time low of $8 last week after some banks decided not to renew $500
million in credit. However, Finova is forbidding any insider activity while the
company is considering a sale or other options to improve its finances and
boost its stock price.
Last week, the company said it has retained the Credit Suisse First Boston
investment bank to review "strategic alternatives." On Friday, a day after
meeting with Credit Suisse officials, the company said there has been a
significant level of interest from outsiders.
Finova's stock closed Wednesday at $11, down 19 cents. |
