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Market Savvy | CONSUMER SAVVY / A briefing for investors

Some Dell Computer Insiders Sell High

October 20, 1998|Bloomberg News

Dell Computer founder, Chairman and Chief Executive Michael Dell sold 4 million Dell shares last month, or about 2% of his holdings, for $257.2 million, days before the stock reached a record high of $69.25 on Sept. 29. Eight other Dell executives and directors also sold portions of their holdings earlier in September, according to the Washington Service, which tracks insider buying and selling.

Since then, the share price of Dell, the leading direct seller of personal computers, has fallen 17% amid concern that global economic problems could crimp sales growth.

"This is unusual for what we've seen in the past. People should be a bit concerned," said Paul Elliott, research analyst at CDA Investnet, which also tracks insider buying and selling. What's interesting, Elliott said, is that so many other executives besides Dell sold shares.

Dell, 33, has been selling shares in the company for the last several quarters. He still owns more than 15% of the firm, however.

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