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Microchip Technology Inc. Message Board

  • tashby2 tashby2 Nov 4, 2002 1:21 PM Flag

    Vice President sells $1,000,000 shares

    Anybody else notice last week one of MCHP's vice presidents sold shares for roughly $1,000,000? He missed the high share prices of today, but is this a sign MCHP's short-term rally may be peaking?

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    • The commenters on this post seem wrong to state the "shares" were about to expire. Even if the "options" were about to expire (which I don't know to be the case), the VP could easily have exercised the options, bought the shares, and HELD THE SHARES. Instead, the VP sold the shares.
      I know of no deadline to sell shares once an option is exercised and shares are acquired. So the question remains, did the VP sell because he thought he'd better get the shares converted to about $1,000,000 in cash before share price drops? Maybe so.

      • 2 Replies to philippians4and13
      • philillians, here's the text of my message:
        "You're right applizard! Seems lots of shorts either don't understand stock option grants or hope others don't understand them. It appears the vp executed a cashless exercise. With a price of 2 bucks and change, those options would have to be getting close to expiration."

        You are correct that shares don't expire. However stock option grants do typically have expiration dates. The easiest thing for the VP to do is called a cashless exercise. In that case the options are exercised, the stock sold, the exercise and whatever fees paid from the sale, and the net $$$ is sent. Just takes a phone call and no cash up front. Pretty easy huh. :)

      • He is going to Las Vegas this weekend, so..

    • No, it's a sign the VP had to unload the shares before they expired. Use 'em or lose 'em.

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