<I know there are many reasons why one might sell, incl. margin calls, home buying, etc., but for my money, such a huge insider sale at 23.75 is enough for me to sell ASND at a very small gain.>
Bay watcher, I respect anyones decison to sell (or buy) based on any reason. However, I beg to differ with you regarding the significance of one 28,000 share insider sale.
Even combined with the sales in late Oct. by several ASND execs., the total number (of shares) and dollars pale in comparison to the wholesale insider selling that took place in COMS between 8/7 - 9/29. 11 insiders sold 2.713 million shares at an average transaction price of $50.75 for a total value of $137,692,698. THATS SELLING! (COMS is down 31% since that sale).
I'm not sure which Bay you're watching, but if its the S.F. Bay, as is the case for Ascend Communications executives, then Mr. Hendron's $665,000 sale may very well have been nothing more than a down payment on a luxury home.
<Of course I understand not wanting to take a huge loss just because 1 insider sold; I probably wouldn't either.>
I think you're ignoring the underlying fundamentals that exist here. Go back and read the Comtex report posted yesterday confirming Ascend
Communications as the worldwide market leader with 69% of the ISDN and 42% of the frame relay market amongst all ISP's. As well as gaining marketshare in ATM. Unless demand for the buildout of the internet dies tomorrow I am pretty comfortable with ASND's opportunity to return to the very high growth technology company that they became known for.
On the other hand, I would not hesitate to sell 100% of my position in ASND in a heart beat no matter how large the loss if I did not believe that the share price would turnaround. Or, if I felt strongly that there was a better vehicle with which to gain appreciation in my portfolio.
Larry |
