Yesterday Lambros Papaeconomou at Lloyds List wrote a follow up note to his readers pertaining to an earlier article and a subsequent NAT rebuttal. Yesterday’s write up is here - and the links to the prior articles are embedded within.
I recently published an article on Lloyd’s List regarding public disclosure standards on company insider trades by Nordic American Tankers.
The articled focused on the fact that NAT publicly discloses share purchases by the CEO, but is does disclose any share disposals.
NAT has been in full compliance with SEC reporting requirements regarding insider sales. NAT has filed a form 144F prior to any intended sale by the CEO. It must be noted that these forms are almost exclusively filed on paper form (as is the case here) and therefore are not made available on the SEC’s online database.
Any interested party who follows the company but has no access to these paper forms would not know that the company’s CEO has also sold a substantial number of shares. In fact he has sold more shares than he has bought back.
The bigger issue however is public disclosure. We believe that public disclosure is not the same as compliance with SEC rules.
NAT regularly issues press releases when the CEO is buying shares, although it is not required by SEC rules. On the other hand it has not issued a press release when the CEO sold shares in the past. Press releases regarding insider trades are at the full discretion of the company. NAT chooses to issue press releases only about share purchases and not about share disposals.