Intersections Inc & Scansource Inc

Shares in NASDAQ-listed Intersections Inc have been hot property of late. After treading water around $10 for 5 months until the mid-March announcement of full year earnings, the price has subsequently more than doubled. On 31st May the company announced that it had spent $20 million repurchasing 9.7% of the shares in issue and that a similar sum was earmarked for future buy-backs. During this period, no fewer than six senior officers have been gifted stock and subsequently cashed in between a third and half of them into the strengthening share price. Amongst these was Chairman and CEO, Michael Stanfield. On 24th March he sold 14,700 shares (42% of the free shares he received on the same day) at $11.50.

Mr Stanfield did well to hold on to the balance – the share price peaked at above $22 earlier this month. It is his latest trades, however, which pique my interest today. On 11th July Mr Stanfield exercised 705,000 options at $8.27 per share. This increased his overall shareholding by 65% to 3.45% of the company. On the same day he sold nearly two-thirds of these (443,000) at $21.69. In its latest earnings guidance the Board indicated that it is looking for no more than low single figure revenue growth this year.

R. Scott Benbenek, President of Worldwide Operations at Scansource Inc, has sold a considerable proportion of his shares in the NASDAQ-listed technology distributor. On 18th July he exercised 14,000 options at $11.21 and sold them at $38.03, pocketing $375,000. On the same day he sold another 4,655 shares at the same price to raise a further $177,000. The stock has performed well this year, having risen 20% since the close of 2010. The following day Mr Benbenek took advantage of a strong intra-day price hike to offload 22,183 shares at $38.79. This trade netted him $860,000 and reduced his holding by 53% to 19,649 shares. Yesterday’s close of $41.31 represents an all-time high for the stock. What next from Mr Benbenek?

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