Paul,
You talked about the the insider selling here is the paragraph in question:
"As for the two sellers, that iratates me. There never seems to be a
reason why an insider sells at such low prices already. But, without
knowing all of the facts that made this dumbo sell, you can't make a
educated judgement! Maybe he got a margin call? Maybe he had to settle
up with cash what he previuosly had on lien with stock. Who knows?
Obvioulsy it doesn't sound good. But, there is always a silver lining.
Always. "
I am long CSCC and want the stock to go up as do most of us but am irritated with management for not explaining the insider selling. A good explanation would help assure the investment community.
Fore Systems had a conference with an analyst today and indicated their percentage share of revenue from Japan will not increase during this quarter. This sent the shares of Fore realing. The CEO shortly thereafter issued a press release explaining there was a misunderstanding as to what was meant by the comment about the Japan market percentage. Here is the press release just hours after the drop in the stock of Fore:
" NEW YORK, March 7 (Reuter) - Fore Systems Inc Chief Executive Eric Cooper said the sell-off in his company's stock on Friday was overdone and that Fore had made no change in its guidance to analysts since its conference call in January.
The executive said he believed the decline may reflect "misperceptions" about a Wessels Arnold analyst's comments on softness in the company's business in Japan.
Cooper reiterated that he expected Fore's Japan business to contribute five to six percent of the company's total revenues for the fourth quarter ending in March, similar to the Japan contribution to Fore's December quarter revenues.
But Cooper said he expected to see Fore's Japan revenues grow in dollar terms during the current quarter, even if it was flat in terms of a percentage of Fore's total business.
Shares of Fore fell by more than 5 points to 25-5/8 in early trading Friday, or more than 17 percent, but recovered some by midday to 27-1/4, down 3-7/8.
Cooper said the company had made no change in its expectations about its Japanese business since a conference call with analysts after the release of results for the third quarter ended in December.
"There is really no new guidance in terms of the models,"
Cooper said in a telephone interview with Reuters.
"That's a misperception about the Wessels story. Someone is not reading beyond the first line," Cooper said.
He was referring to a mention of flatness in Japan in percentage terms versus the December quarter contained in a report on the company by a Wessels analyst on Friday.
The brokerage firm declined to comment on the report.
Cooper stressed that Fore expected growth in Japan in dollar terms. "I don't see that as softness. It's soft compared to a year ago, but that's something we have been saying since the December quarter," he said.
The percentage contribution from Japan has fallen sharply since the fourth quarter of 1995, when the country contributed 20 to 25 percent of Fore's overall revenues, Cooper said.
Cooper attributed the decline on general economic weakness in Japan. He said other countries in Asia and elsewhere have made up the difference in terms of overall revenues. "Again, that's nothing new," he said.
The current First Call consensus for the fourth quarter ending in March calls for Fore to earn $0.15 a share, compared with $0.11 per share in the quarter ended March 1996.
"I would say that the sell-off doesn't seem to be based on significant new news," Cooper said. "It's fair to say I'm perplexed" he said of Wall Street's reaction.
12:52 03-07-97"
Why can't the management of Cascade do a similar release explaining the insider selling.? Specifically, why now? I am sure a good reason would help the shares of CSCC as the comment by Cooper brought Fore shares back two of the lost five points.
These are my thoughts and it is time for CSCC management to explain the selling as you conjectured as possibilites.
Glenn |
