144 stock can be like issuing insider dividends.
Form 4 selling can be more serious only if it is in considerable quantities by many insiders.
Form 144 notice of intent to sell is restricted stock issued to insiders (private placement investors, Pre-IPO restricted stock, restricted stock issued to key employees, etc.)
which is now legally allowable to be registered and sold according to the following formula: 1% of the outstanding shares in the company can be sold quarterly, i.e. .01 x 4.5 million = 45,000 144 shares can be sold quarterly.
This is not necessarily bad if it is only a few times and generally in small quantities. Usually the insiders have been holding on to their stock for a long time and are merely freeing up some badly needed $ for personal reasons. Note: NO 144 stock should be issued or should have been issued to any TMSR director since the IPO and better not occur for any reason. That would be tantamount to printing fiat money and an egregious act of issuing insider dividends. esecurities would vigourously pursue any such act as alleged stock fraud and will take it to the Supreme Court, if necessary, in order to establish once and final mandatory, Federal, on point legal authority and precedence. This is a big issue with us along with repricing options, which the TMSR board engaged in in fiscal '96, as cited on this thread. It simply will not be tolerated in the name of corporate governance and shareholder value.
TMSR is clearly a HOLD, at the very least, at this time, given its fundamentals (ref/A. Mitchell/Cereghino post/report) , we are 2/3 through Q3, and BUY recommnedations coming out of Black & Company, et al. |
