Sun Microsystems Inc. (SUNW) - Given the impressive run that the shares of Sun
Microsystems have experienced during the last few months (increasing 70%
since April), one would expect a reasonable amount of profit taking. However as
its stock price has recently increased the $47 level, insider distribution has
accelerated at an exceedingly fast pace. A March commentary highlighting sales
of 293,228 shares in the $31-$33 range was soon followed by another round of
distribution covered in a May issue, where insiders cleared out 802,138 shares in
the $26-$32 range, as the issue recovered from a low of $26.88 a share in April.
The most recent distribution consists of eleven executives selling or filing their
form 144 intention to sell 917,983 shares from July 11 to July 31 in the $39-$47
range. Among the other executives completing their largest sales since initially
filing in '90 -`94, are President-SunExpress Dorothy Terrell (76,500 shares), VP
-Human Resources Kenneth Alvares (78,000 shares), and VP & CFO Michael
Lehman (114,000 shares). After completing his largest sale ever for 600,000 shares
in May, Chairman Scott McNealy signaled his intent to dispose of 300,000 shares.
Sun Microsystems is a leading manufacturer of network computing systems and
a top maker of UNIX-based workstations. |
