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Technology Stocks : Westell WSTL -- Ignore unavailable to you. Want to Upgrade?

To: PeterR1700 who wrote (11700)	6/22/1998 10:37:00 AM
From: Zephod	Read Replies (4) \| Respond to of 21342

>>When you see Mr. Seamens, send him my appreciation along with yours. Peter; If he's done selling for June maybe we can start to move up. You can't blame these guys with these large positions for wanting to lighten up. Still that doesn't alter the facts. There's an obvious relationship between GS 144 filings, subsequent sales and Westell stock price. These sales are a very real factor, a tangible that you can look at a chart and see the results of. For example take his latest bout when he filed on 6/17 to sell 60K. The volume that day was 134K, I think we can assume if he sold any it was only a portion of the 60K, otherwise his sales would be such a percentage of the daily volume we would certainly have seen more than a 3/8 point decline. Volume 6/18 was only 57K, same situation here, probably little selling. Friday 365K, but thanks to info from Anthony we know 128K were not traded that day so total volume 6/19 is around 238K. Over the 3 day period his sales accounted for about 15% of the total volume, almost certainly more percentage wise Friday. Depending on how he broke up the trades you could be talking 6-10K blocks in 3 days, total volume for the 3 days only being 430K. That's some pretty hefty downward pressure...& that's only the immediate consequence. Another effect of his selling. Assume you're an analyst, are you going to recommend your clients buy a stock trading under $10 in which the former CEO, who knows more about what's going on in the company than you do, is selling? I don't blame him for wanting to cash some in, I'd do the same if I had a million shares. My only problem with his sales is the fact he's selling at (& contributing to) the 52 week low. Having a stock price below $10 is not good for the company. To be fair his 60K blocks only represent about 5% of his position, it's not like he's unloading 70% of his holdings. Still I find it hard to believe anyone can need that much money in such a short period of time for anything, how many people do you know that pay cash for a house? One other point to mention, it appeared he was selling on schedule, 60K a month, well he deviated this month and has sold 120K so far.