You made a comment about a statement in SEC rules which talks about how 144 filings come in groups and it was a good way to see insider activity in a target company...I could not quite understand what you were trying to say. Please elaborate if you can.
Eagle,
First, there have been hardly any Xylan insider sales worthy of mention, so I don't really think anything can be read into the few that have happened.
Second, it is true that there is often a great deal of selling by insiders of the acquiree before a takeover. I believe that is because insider sales will be prohibited for a period of time after the acquisition (until consolidated financials are published). Thus, those insiders in need of some working capital sell beforehand. This is precisely what happened before ASND bought CSCC. There were a ton of insider sales by Cascade insiders just before the buyout. (And also by ASND insiders.) The scale of these insider sales dwarfs anything we've seen vis-a-vis Xylan. Still, it is clear that you cannot presume, from insider sales, that an acquistion would not be happening any time soon.
Third, I think Xylan both is undervalued and will be acquired. Notwithstanding, it has had a great run up from 10. Perhaps it would make sense to lighten up just a tad as we near 20? If there is a retrenchment, one could always buy back in at a cheaper price. If there is no retrenchment, then there are always the shares we've kept. The caveat here is that I'm a wimp and always sell too soon. On the other hand, I keep chanting "the trend is your friend."
Best,
Gary Korn
|
