Margin calls from corporate insiders to pay personal obligations are still coming, although last week’s pace into this week does not look as severe as in prior periods we have covered.  We have seen such filings from Allied Capital Corp. (NYSE: ALD), Extra Space Storage Inc. (NYSE: EXR), PDF Solutions Inc.’s (NASDAQ: PDFS), Talbots Inc. (NYSE: TLB), and TXCO Resources Inc. (NASDAQ: TXCO).  These are likely only some of the insider sales that have gone throughas a result of the margin calls.  As you can imagine, these rarelyoccur because things are going so well.

We have prepared these in alphabetical order, and you will probably besurprised at just how low some of the dollar amounts are in some ofthese margin calls.

Allied Capital Corp. (NYSE: ALD) director Robert Long has had aninvoluntary stock sale of 5,281 common shares at an average price ofabout $3.88.  This is merely a total of about $20,491…. and Longdirectly held 15,005 shares after the sale.

Last week, Extra Space Storage Inc. (NYSE: EXR) Chairman and CEO,Kenneth M. Woolley, voluntarily sold 350,000 shares of the Company’scommon stock.  While it was voluntary rather than involuntary, it wasnoted that proceeds were used to partially pay down the outstandingbalance on a margin loan secured by Mr. Woolley’s common shares.  Whilethese sales were noted as being related to certain contractualobligations, it was also noted that there had been no default or margincall.  This sale amount was roughly 15% of his total holdings.

Last week, PDF Solutions Inc. (NASDAQ: PDFS) VP Andre Hawit hadinvoluntary sales of 112,608 company shares at sale prices of $2.44 to$2.58 to meet a margin call.  Hawit reported selling 67,477 shares onthat prior Monday for $177,998 to meet a margin call.  It looks like hestill beneficially owned 653,194 shares after this last sale.

Last Friday, Talbots Inc. (NYSE: TLB) President & CEO TrudySullivan involuntarily sold 51,005 pledged shares to satisfy marginrequirements under a credit line.  Sullivan appears to have pledged theshares as collateral against a loan with a financial institution.Sullivan appears to own 336,500 restricted shares and 108,333 vestedstock options and 292,767 unvested stock options, but it appears thatno additional shares held by Sullivan in Talbot’s are subject to pledge.

TXCO Resources Inc. (NASDAQ: TXCO) director Jon Muckleroy sold 5,000shares at $3.06 for a total gross proceeds of $15,300.00… to covermargin calls.  He still holds direct ownership of 93,000 company sharesand indirect ownership of 117,000 shares.  While this is a very smalldollar amount, this stock has lost some 75% over the last six weeks.

• There was a much larger list of margin calls; Stock Tickers: AIV, BSX, CPE, CHK, DNR, LTM, PROV, PHM, SPA, STRL, WSM.

If the markets keep doing anything at all like they have been, get used to these margin calls against corporate insiders.  There will be more.

Jon C. Ogg
November 19, 2008

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