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  • janusdealer janusdealer Mar 1, 2005 9:12 PM Flag

    mgmnt needs to look at the option

    prices the insiders are allowed to buy at.
    $2.50 @ share. Gimme a break!
    Beginning to wonder now. alot of the BoD and mgmnt have reduced their stake here to next to zip.
    Long time supporter here but corp greed beginning to pzzz me off.

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    • 90% of the time so do I.
      Problem is 80% of the shares are controlled by institutions. Do they care?

    • Give me a break. You should know the strike price of an option is determined on the grant date (date it was issued) and has nothing to do with greed. If BOD members and MGMT are exercising $2.00 options it�s because the options were issued back when the stock was $2.00 (split adjusted) and are enjoying the reward of increasing the value of the company almost tenfold. The last time the stock was in the $2.00 range was in January of 2001! Yea, those greedy bastards got options at $2.00 in 2001 and increased the value of the company tenfold and now they are actually selling some stock! Can you believe they only made 1,000% for shareholders and have the balls to sell some stock?

      • 2 Replies to followtheherd1991
      • Good comment re options... they most probably were granted a few years back, perhaps either in the form of options or warrants to purchase company equities, based on certain restrictions.
        Generally when options and/or warrants are granted, they are good for an extended period of time... i.e, 5 years. And more often, they are automatically null and void if the grantee were to left the company.
        Pricewise, most of my experience indicates options being granted at a strike price equal to the price of the underlying equity at the time they were granted.
        Companies may also issue warrants to purchase X number of shares over a period of time, i.e. 5 years, at a stated price. It is my understanding that with warrants, the strike price can be lower than the price of the stock at the time of the grant...the stated exercise price being being somewhat flexible and up to the company, but not so low that the IRS may consider it receiving something of value at that time and hence, in the eyes of the IRS, it becomes a taxable event at the time of the grant(even though the warrant holder didn't exercise the warrant) I am not an accountant or tax expert in any way, so my understanding may be incorrect.

      • you miss the point. It is/was the way the options package was structured. Why issue options at the(then) current buy price? That surely does not anticipate any growth in the company's sales or profits and share price now does it. So what was the risk? The options expire worthless? How much does that cost?
        Further they only increased shareholders value 1000% if the shareholder bought at $2.00 in 2001 so you calcs are a little off there.

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