There is an article in the WSJ about insider selling in internet stocks.
The part referring to BAMM -
Two Books-a-Million insiders registered to sell 429,000 shares amid the Internet-related buying frenzy that inflated the bookstore chain's shares nearly ninefold last week.
Clyde B. Anderson, Books-a-Million's president and chief executive officer, registered to sell 258,000 shares of the company's common stock, according to Federal Filings news wire. In addition, Joel R. Anderson, who isn't a Books-a-Million executive or board member but whose brother is the company's chairman, registered to sell 171,000 shares.
The two men registered with the Securities and Exchange Commission to sell the shares, which amount to about 10% of their combined stake in the company, on Nov. 27. That day, Books-a-Million shares closed at $38.9375 in Nasdaq Stock Market trading, compared with $4.375 on Tuesday, three days earlier.
Books-a-Million shares began their steep ascent Nov. 25, after the company announced it had launched an enhanced Web site in an effort to increase sales beyond its base of 172 bookstores in 17 states, mostly in the Southeast. The stock soared as high as $47 on Monday before tumbling amid a cooling off of infatuation in stocks tied to the Internet. Tuesday, Books-a-Million closed at $24.50, down $5, or 17%.
Analysts said the filings to sell shares suggest that Books-a-Million insiders, who haven't spoken publicly about the surge in the company's stock, may agree privately that last week's frenzy propelled the stock much higher than its fundamental value.
Books-a-Million officials couldn't be reached for comment Tuesday. After the stock sales, four members of the Anderson family, including Clyde Anderson and Joel Anderson, would still own 7.6 million Books-a-Million shares, or about 44% of the shares outstanding, according to the company's most recent proxy statement. |
