article released Pegasus still not flying
When is an insider purchase not really an insider purchase? When Pegasus Wireless is involved. Don't get me wrong; I'm not here to pile on. Foolish friend Seth Jayson already revealed the numerous problems facing this company, and I've nothing more to add. I simply find this week's Form 4s both amusing and instructive.
From Friday through Monday, six different insiders appeared to buy shares, including CEO Jasper Knabb, who acquired 132,240 stubs. But Knabb didn't spend a dime, and neither did any of his five colleagues. How do I know? I read the fine print, Fool.
Take this filing from director William Horn. The light green footnote makes clear the arrangement: "Shares issued as Board of Directors compensation in lieu of cash payment."
Neither of the initial filings for Knabb or Chief Financial Officer Stephen Durland featured the same footnote. But that changed on Monday, when new documents were issued. Knabb's revised Form 4 may be found here, while Durland's updated filing is here. The lesson? Take time to read footnotes; they're there for a good reason.
