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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: KaiserSosze who wrote (34114)	5/2/1999 6:57:00 PM
From: Anthony@Pacific	Read Replies (1) \| Respond to of 122087

SEC<----------INSIDERS MUST WAIT TO TRADE!!!!!!!!!!ATTENTION !!!READ all ABOUT IT!!!!!! ( WE ALL KNOW THEY WONT WAIT AND WILL CONTINUE TO MAKE 'ERRORS" ) Just more shorting Oppurtunities. Story 6 / 20: 99 <GO> for list of story options. Govt T N I Page 1 / 8 BN U.S. SEC to Issue Guidance Limiting Executives' Stock Trades Apr 29 1999 13:35 U.S. SEC to Issue Guidance Limiting Executives' Stock Trades Washington, April 29 (Bloomberg) -- The U.S. Securities and Exchange Commission soon will issue legal guidance directing executives to postpone trading stock until their companies disclose potential market-moving information, SEC officials said. The SEC's planned guidance on ''materiality,'' aimed at curbing possible inside trading and increasing corporate disclosure, seeks to clear up confusion about what information is so significant that it needs to be disclosed, SEC Chief Accountant Lynn Turner said. The way some U.S. businesses interpret securities rules on disclosure of ''material'' information, companies only must announce developments that could increase or decrease company profits between three and 10 percent. ''We think the guidance will rein in the executives playing on the fringes, making intentional errors, and bring them to where the vast majority now are,'' Turner said in an interview. The long-awaited ''staff accounting bulletin'' is due to be released within the next month, SEC General Counsel Harvey Goldschmid said. It will make clear that a 1976 U.S. Supreme Story 6 / 20: 99 <GO> for list of story options. Govt T N I Page 2 / 8 Court ruling prohibits an executive from trading his company's stock until the corporation discloses any potentially market- moving information, he said. An accounting executive said the SEC's bulletin will help fill a void. ''Any guidance for companies and auditors will be good,'' said Bob Kueppers, a partner with Deloitte & Touche LLP, a Big- Five accounting firm. ''We now handle these issues on a case-by- case basis.'' Questions About Trading Questions about when executives should trade stock when they know information that hasn't been announced to the investing public arose this week in connection with stock purchases by Chock Full O'Nuts Corp. Chairman Norman Alexander. Alexander bought more than 530,000 company shares, at $5 a share, in February. Chock Full O'Nuts hadn't disclosed that the company had previously received buyout offers from Sara Lee Corp. at a higher price. Money manager Mario Gabelli, who says his funds hold a 15.8 percent stake in Chock Full O'Nuts, has called for Alexander's resignation, saying the chairman's purchases raised ''moral and Story 6 / 20: 99 <GO> for list of story options. Govt T N I Page 3 / 8 ethical questions.'' Chock Full O'Nuts shareholders have filed at least three lawsuits this week seeking the return of any profit from insider stock purchases. Chock Full O'Nuts shares have risen 50 percent since Sara Lee last week said it renewed its previously unsuccessful effort to buy the New York-based coffee company. Chock Full O'Nuts last week said it rejected an offer of $10.50 per share. Company, which traded at 6 3/8 before the Sara Lee bid was disclosed last week, fell 3/16 today to close at 9 9/16. Months After Last Contact Chock Full O'Nuts executives have said that when Alexander bought shares in February the trades occurred four months after the company's last contact with Sara Lee. An Alexander trust and a company he controls bought the shares at the request of the seller, and received clearance from legal counsel to make the purchase, a company spokesman said. The SEC's definition of ''materiality'' -- the kind of information that must be disclosed -- will call for a qualitative assessment, rather than a numeric measure, said Goldschmid, the agency's general counsel. As an example, he cited a company that has information -- Story 6 / 20: 99 <GO> for list of story options. Govt T N I Page 4 / 8 about an expected merger write-off, a restructuring charge, or research and development expenses -- likely to affect its profits by less than 3 percent. If this information could substantially affect the stock price, it is considered ''material'' and must be disclosed -- even if it won't have much effect on the bottom line, Goldschmid said. ''Any executive that buys or sells the stock before the disclosure is clearly trading on inside information,'' Goldschmid said. --Neil Roland in Washington (202) 624-1868/ge/bd Story illustration: For graph of Chock Full O' Nuts stock price: CHF US <Equity> GIP Company news: CHF US <Equity> CN Chock Full o' Nuts SLE US <Equity> CN Sara Lee 5091Z US <Equity> CN Deloitte & Touche News by category: NI SEC SEC NI SCR Securities LWIN is fine and dandy..not worried about it in the least bit.