Mike, sorry forgot that you have to be a WSJ subscriber to get in.
Here it is. Some people don't like to read a long post but they can just click, next.
See lists of the biggest individual insider trades of the past week and a rundown of companies with the largest net change in insider ownership.
Tuesday, the red-hot sector rebounded after a couple of days in which some stocks, such as Onsale Inc. and Yahoo! Inc., fell from recent nosebleed levels.
Insider-data trackers have taken note of the stepped-up selling. Craig Columbus, vice president of research of Disclosure Inc. in Bethesda, Md., says while there hasn't been any great rush for the exits by Internet insiders, "for the first time, selling seems to be more pronounced, more widespread and extends to more insiders within the companies."
Insiders at EarthLink Network Inc., Spyglass Inc., Broadcom Corp., RealNetworks Inc. and Excite Inc. -- where Chief Executive George Bell is substantially reducing his holdings of exercisable options and common stock -- have been taking advantage of Internet stocks' lofty prices. Books-A-Million Inc. insiders have sold after a huge run-up that has since retreated somewhat. And the selling trend at Amazon.com Inc., which began in October, continued as several executives there recently indicated plans to sell more shares.
The sales and planned sales may indicate that Internet insiders think their stocks are overvalued. Internet stocks "are looking awfully pricey," Disclosure's Mr. Columbus says, adding, "There's a huge disconnect between the way these stocks are priced and the traditional tools of security analysis."
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'Net SellingSelected Internet companies where insiders recently have sold or filed to sell shares: Company No. of
insiders No. of
shares Broadcom 12 2,300,000 Excite 10 752,790 EarthLink Network 7 575,885 CNET 5 505,728 Spyglass 4 180,920 RealNetworks 8 136,500
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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.
Insider-data watchers said recent sales at Excite, Redwood City, Calif., were noteworthy. Between Sept. 23 and Nov. 11, 10 insiders sold or indicated plans to sell a total of 752,000 shares. Mr. Bell indicated he plans to sell 200,000 shares, which would represent a reduction of 71% in his holdings of common stock and exercisable options, according to CDA/Investnet, a Rockville, Md., company that tracks insider transactions. Excite, whose stock is up more than threefold this year, declined to comment on the sales.
RealNetworks, which has also risen almost threefold this year, closed Tuesday at $36.75, down $1.25 on Nasdaq. Since Oct. 23, eight company insiders have sold or indicated plans to sell 136,500 shares. The Seattle company provides software that allows audio and video broadcasters to deliver their products over the Web in real time.
At Amazon.com, Director Tom Alberg indicated in Securities and Exchange Commission filings on Nov. 20 and Nov. 24 that he plans to sell 40,000 shares. The online retailer's shares, up more than sixfold so far this year, surged 9.1% Tuesday to $209.50 on Nasdaq.
In a secondary stock offering -- a public sale of previously issued securities held by large investors -- 10 insiders at Broadcom sold 1.3 million shares valued at about $89.1 million on Oct. 26, according to CDA/Investnet. Chairman, President and Chief Executive Henry Nicholas sold 490,000 shares, and co-Chairman Henry Samueli sold 490,000 shares.
Mr. Nicholas said he sold the shares in the secondary offering to help increase the company's public float to about six million shares from three million. Through the secondary offering, the company hoped to increase the stock's liquidity, reduce volatility, and Mr. Nicholas hoped to diversify some of his holdings.
At Spyglass, Naperville, Ill., four insiders sold or indicated plans to sell 180,920 shares between Oct. 27 and Nov. 10. In filings from Nov. 2 to Nov. 9, President Douglas P. Colbeth indicated he plans to sell 80,000 shares at $13 to $14.93 each. Spyglass is up nearly fivefold since the beginning of the year. The stock closed up $1 at $24.50 on Nasdaq Tuesday.
At EarthLink, seven insiders indicated in SEC filings from Oct. 15 to Nov. 12 that they plan to sell 575,885 shares. George Soros, a major shareholder, indicated he plans to sell 145,704 EarthLink shares held by his company, Quantum Industrial Partners LDC. EarthLink CEO Charles Betty indicated he plans to sell 75,000 shares and Chairman Sky Dayton indicated he plans to sell 50,000 shares.
EarthLink shares, which are up nearly fivefold this year, rose $5.1875, or 8.5%, to close at $66 on Nasdaq. EarthLink, Pasadena, Calif., is an Internet-access provider. A spokeswoman said the amounts involved represent only a small portion of the CEO's and chairman's holdings in the company.
At CNET Inc., San Francisco, five insiders indicated plans to sell 505,728 shares. That amount included 400,000 shares from Vulcan Ventures Inc., which is headed by Microsoft Corp. co-founder Paul Allen.
Shares of CNET, which provides content for the Internet, are up about 80% this year.
Internet insiders may be more willing to take profits now because of their stocks' incredible volatility, notes Richard Cuneo, editor of Vickers Weekly Insider newsletter. "Insiders in this industry have got to be wondering just exactly what the future will hold for this relatively young industry," he says.
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