Hutchinson Technology Inc. Message Board

  • charboneus charboneus Nov 7, 2011 6:39 PM Flag

    Form 4 filings - question

    Are today's Form 4 filings insider purchases or sales? They look like insider purchases (transaction code "P"), but the Explanation of Responses section in each Form 4 states, in part, that "These shares were sold in multiple transactions ...."

    I assume the Explanation of Responses sections were intended to say "purchased" instead of "sold." Or am I missing something here that someone can illuminate for me?

    Thanks in advance.

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    • They were buys. Bad wording in the form 4. It should have said the shares were purchased in multiple transactions at prices ranging from $1.53 to $1.56, inclusive.

      You can tell by comparing the amount of shares he owned on 4/30/10...38,324. Add the 34000 and his total is what it shows at 72,324 per the form 4.

      Im not inclined to read too much into these insider buys.

      Director VERHAGE owns $2.25 million worth of DCI where he sucked out total compensation last year of $1.723 million.

      His HTCH director fees alone are over $100k per year.
      So the $52,000 he spent last week could hardly be considered wildly bullish.

      His last purchase of HTCH was not timed very well.

      30-Apr-10 5,400 HTCH Purchase at $6.21 per share.
      (Cost of $33,534)

      Richard Penn boguht $46,500 worth but that pales in comparison to the $717,700 in total compensation he sucked out last year.

      The CFO bought 5000 shares. His total compensation last year was $303,900.

      These 3 buys are insignificant relative to the insiders financial resources. (Chump change)

      Still, they are better than a poke in the eye with a sharp stick.

      And its worth keeping an eye on to see if the insider buys continue by these and other insiders.

    • Those would be purchases by insiders. The shares "were sold" by the insiders' respective counterparties.

 
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