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Technology Stocks : Diamond Multimedia -- Ignore unavailable to you. Want to Upgrade?

To: Lachesis Atropos who wrote (3439)	3/1/1998 1:54:00 PM
From: lml	Read Replies (1) \| Respond to of 4679

Yea, the stock. Keep in mind that this stock has traded at substantially depressed levels since going public about three years ago. If you check the stock's price history, you see the initial offering price was about $17, and then traded as high as 40+ before plummeting back into the teens, & then into the single digits which it has flirted with for the past two years. Form 144 must be filed with the SEC before a holder ("insider") of unregistered securities may sell his shares to the public. The shares which have recently been registered are most likely shares these individuals have held long before the initial public offering, perhaps as long as 4-5 years. So, in light of historic price performance of the stock, if you held these unregistered shares, would you want to register your shares in order to sell at some point in the future? How soon will these shares be sold to the public? Anyone's guess. But consider that selling by these individuals is all subject to insider-trading rules, who may not sell during quiet periods such as periods preceding any announcement considered material to an investment in DIMD. Company insiders may also be restricted from selling their stock by corporate rules & regulations or stock purchase plan. As far as timing, consider a Form 144 filing similar to a shelf filing for a public offering of a company's securities at some later point in time. Ultimate sell of the securities could happen within a matter of weeks, months, or even years (but I doubt the latter) Generally, Form 144 filings & insider selling (Form 4) is always something to be wary of. However, in the instant case, the length of time these guys have held this stock, & recent price performance of the stock, makes some selling is understandable. This has always been a stock where there has been insider selling. So if this concerns you, don't invest in DIMD. On the otherhand, IMHO, the prospects for this company are the brightest it's been in a couple years. There is a growing consensus that this stock will continue northward. These insiders may be registering now to take advantage of impending price levels not seen in this stock for several years. You can run this one up with them, or you can choose to stay on the porch.