Diamond Technology Ptnrs - Dtpi - Brief Article

Diamond Technology Partners has proved resilient following a recent 10 percent pullback. Analysts for their part, remain upbeat, claiming that weakness in the IT Services, attributed largely to a negative pre-announcement by Cambridge Technology Partners (an issue not incidentally, also characterized by insider selling), is overdone. Some also point to a strong sales pipeline, as well as positive signals from the human resources front. Insiders are apparently not taking any chances. From February 26 though February 28, six insiders sold a total of 222,495 shares at $24.97 per share. Leading the way, SVP, Secretary Christopher Moffitt, in his largest sale to date, sold 75,000 shares. Not far behind, SVP James Spira sold 60,000 shares. President Michael Mikolajczyk sold 40,000 shares, while Chairman, CEO Melvyn Bergstein sold 30,000 shares. In each case but one (Mr. Moffitt also sold in August '98), the sale represented the individual's sole disposition outside of an April '98 secondary in which company Executives and Directors trimmed roughly 18% from their holdings. In all cases, the sale marked the individual's largest sale since the early '97 IPO. Selling for the first time ever, COO Adam Gutstein and CFO Karl Bupp sold 12,495 and 5,000 shares, respectively. Clearly, unlike CATP, Diamond Technology insiders are relatively infrequent sellers. It is also worth noting that, while the insiders involved continue to maintain considerable positions, the April '98 secondary not only very nearly marked the stock' s all-time high, but proceeded a more than 50% share price plunge. Diamond Tech. is a management consulting firm that synthesizes business strategy with information technology to create innovative digital strategies for leading national and multi-national corporations.

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