Medical Action Industries (MDCI)

[Caradoc]

Magnoon: I just clicked "insider" on Yahoo:
http://biz.yahoo.com/t/m/mdci.html

You'll see I was looking at the three sales by Joseph Meringola -- shown as "10% Beneficial Owner" -- during the last year. You're right that 50,000 shares in February by itself isn't a big deal, but when it follows a sale of 100,000 shares three months earlier, it gives pause for thought.

With only 9.19 million shares and insider ownership of only 24%, Joseph's 10% would mean 900,000 plus shares and a large fraction of the insider held shares even if he barely qualified as a "10% Beneficial Owner." I suppose he'd still be listed in the 10% category even if he held 12 or 13 percent of the O/S; i.e., more than half of the insider shares.

Maybe he's being incredibly stupid. Why sell shares in a company that institutions are buying and that is efficient enough to increase income by 34% from sales increase of only 4%? As I said, my instinct is to buy. That said, if Joseph were to unload another 150,000 shares in the next three or four months, he would personally satisfy a certain amount of demand without anybody having to pry shares away from regular investors.

On the other hand, if a year goes by without more insider selling, I will have joined you.

Regards,

Caradoc