PLS Explain this: Stanley Sen VP Sells 5825 Shares under prearranged trading plan:

[mod mom]

Stanley Senior Vice President William E. Karlson Sells 5,825 Shares
March 18, 2008 - 4:36 p.m.

NEW YORK (AP) - A senior vice president of Stanley Inc., which provides systems integration and professional services to the federal government, sold 5,825 shares of common stock under a prearranged trading plan, according to a Securities and Exchange Commission filing Monday.

In a Form 4 filed with the SEC, William E. Karlson reported he sold the shares Thursday for $$28 apiece.

The stock sale was conducted under a prearranged 10b5-1 trading plan which allows a company insider to set up a program in advance for such transactions and proceed with them even if he or she comes into possession of material nonpublic information.

-snip

http://www.canadianbusiness.com/markets/market_news/article.jsp?content=D8VG2H401

SO CAN STOCKHOLDERS ANTICIPATE PROBLEMS AND DUMP STOCK JUST IN CASE? OR IS THIS TYPICAL?

[rurallib]

1. I can try

In anticipation of retirement or some other expected major change in life a company executive can arrange with the SEC to sell their stock on a scheduled basis. The sale will then proceed on schedule basically no matter what.
I am not a stock broker or anything. When P&G fell drastically (about 50%) one day a few years back many of us lowly employees were looking to see if any of the big boys had been dumping stock. There were a couple who were doing that very thing in anticipation of retirement within a couple years. They were diversifying some of their holdings.

[On the Road]

2. By Itself, There´s Nothing Suspicious About It

That's why the programs are set up. If the executive is dumping shares because of common market trends or economic news that everyone knows about, it's fine. Even news about his or her employer as long as it's public.