Dan River Inc - Drf - Brief Article - Statistical Data Included

In December, we commented on six insiders at Dan River acquiring shares through open market purchases and options exercises. Since then, Dan River released Q4 results, with a net loss (due in part to pre-tax charges resulting from the closing of the North Carolina plant), despite an increase in net sales (due to an increase in home fashion products). The company continues to face competition and pricing issues relating to the Asian turmoil and currency devaluation. To mitigate these effects, management is integrating production at the Bibb Company with recently purchased Glenn Manufacturing facility. Cost savings should be evident later this year. This will help increase earnings and analysts believe that share prices should respond accordingly. Insiders appear to support the notion of a strong future as they continue to acquire shares. From January 12 to February 25, six insiders acquired 103,000 shares, 50,000 on the open market at $6.63-6.56 per share. President, COO Richard Williams purchased 30,000 share s, after exercising options for 28,000 shares in November '98. VP Manufacturing Services Gregory Boozer exercised options for 8,250 shares; he acquired shares via options exercises in November as well. Another repeat accumulator, VP, Secretary, General Counsel Harry Goodrich exercised options for 12,750 shares. Buying again, Directors John May pole and Donald Keller purchased 10,000 shares each. Joining in the acquisitions, President, Apparel Fabrics James Martin exercised options for 32,000 shares, though he did return about a third of those to the company. It is reassuring to see insiders continue to acquire shares overtime, and while DRF continues to trade at discount prices, the growing insider accumulation is certainly worth considering. It is also worth mentioning that since December, institutional ownership climbed over 10%. Dan River Inc. designs, manufactures, and markets home fashion products and apparel.

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