The Sports Club – SCY – Brief Article
After a year of an unfortunate combination of lackluster trading and consistent insider purchases, The Sports Club recently broke out of its trading band, reaching $6 per share. The Sports Club operates fitness centers under the Sports Club and Spectrum Club names, as well as the successful NYC Reebok Sports Club. Company insiders had been accustomed to selling shares occasionally in the past at higher prices, but we have not observed an insider sale since August ’98, just before the stock crashed. During the fiat period that ensued, a number of insiders moved on the stock. Chairman D. Michael Talla most recently purchased 50,000 shares at $4.25, adding to substantial purchases made in May. CEO, COO John Gibbons picked up 15,000 shares at slightly higher prices in June, while Vice Chairman Rex Licklider bought 88,700 shares. As you may recall, we highlighted two additional insiders, Timothy O’Brien and Brian Collins, purchasing shares at the depressed levels earlier in the year. It is always possible that the stock has had its run; however, the stock may deserve a close look, especially should it slip back into the old trading band.
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