To: Melissa McAuliffe who wrote (246 ) 3/19/1998 12:23:00 AM From: AlienTech Respond to of 4509
To: +Bob Dixon (188 ) From: +Bry Wednesday, Mar 18 1998 7:21PM EST Reply # of 189 Insider selling.." ARBOR SOFTWARE CORP. - ARSW -- The Street seems to have embraced Arbor Software's evolution from a provider of technology components to a developer of applications. The company makes OLAP (online analytical processing) applications for the data warehousing market. Since the warehousing industry is an emerging market, some are concerned about the risks of an industry downturn. The company's recently-posted slightly better-than-expected results were asterisked, by some observers for revealing a sharp increase in receivables. Another concern was raised when the company implied that it planned to limit the level of disclosure it provides to the public, on an ongoing basis. In conjunction with this, an interesting insider selling pattern has surfaced-insiders are selling at a higher-than-normal clip despite the fact that the shares have yet to regain their peak $80 level, reached shortly after the '96 IPO. Dropping to as low as $17 last year, the stock rebounded to the $50 range before year-end tax loss selling took its toll. As year-end selling pressure lifted in January, insiders took advantage of the situation. Three executives sold or filed intention to sell a total of 268,000 shares since November (252,500 of them this year). One of the sellers, James Dorrian, has recently relinquished his CEO position; however, Dorrian (45), who continues in his role as Chairman, has sold 237,000 shares since November, dropping his position by 39%. Also selling is new-CEO John Dillon, who dropped 25,000 shares in January. The sale trimmed his position by 23%. Both insiders are dropping their largest amounts on record with these sales. We are seeing an increasing amount of selling in application development companies including BMC Software (BMCS), CACI Inc. (CACI), Peoplesoft (PSFT) , DSP Group (DSPG), Rainbow Technologies (RNBO), Transaction Systems Architects (TSAI), Edify Corp. (EDFY) and Intuit (INTU) among others "