Sometimes a headline tells a story that simply does not exist. Today is a great example.
In an AP story the headline reads "Sirius Satellite Radio CFO Sells Shares". This has to be a big story, right? After all, Sirius is in the midst of a merger, and why would the CFO sell shares if he felt thigs were going well?
The SEC Filing tells the whole story.
Explanation of Responses:
( 1) Shares of common stock sold are equal to federal and state taxes due on March 15, 2008 as the result of the vesting of the restricted stock units and the related brokerage commission on the sale.
Long story made short is that such sales are pretty typical. This represents a paperless transaction. Frear had restricted stock that vested. Upon vesting, the
capital gain applicable taxes are due. Enough stock is sold to cover the tax expense of the capital gain applicable tax, and brokerage fees. More often than not, such sales have nothing to do with the sentiment of the insider relating to the stock or the company. It is simply a matter of Uncle Sam getting his share.
The AP story probably generated a lot of web hits, but there really is no story here.
Position - Long Sirius, Long XM