DJ CEO SARVARY Sells 15,000 Of TEMPUR-PEDIC INTERNATIONAL INC >TPX (DJ)
SOURCE: Form 4
ISSUER: TEMPUR-PEDIC INTERNATIONAL INC SYMBOL: TPX
FILER: SARVARY MARK A TITLE: Chief Executive Officer
DATE TRANSACTION SHARES PRICE VALUE 10/21/11-10/24/11 Exercise* 15,000 $7.81 $117,150 10/21/11-10/24/11 Sale 15,000 $68.00 $1,020,000 (10b5-1 Plan Indicated)**
OWNERSHIP: 0 (Direct)
* - Exercised 6 years, 8 months before expiration. ** - A 10b5-1 plan enables an insider to establish a program to make trans- actions according to an advance plan. Such a program allows an insider to continue with planned transactions even if he or she comes into possession of material non-public information.
The Form 4 is filed with the Securities and Exchange Commission by insiders to report transactions in their companies' shares. Open market purchases and sales must be reported within two business days of the transaction.
Insider Data Source: The Washington Service (firstname.lastname@example.org‚ or 301-913-5100)
when the company buys, it is the shareholders money, when the CEO sells, it is his own money. The CEO does not beleive there is any upside from here, only down, so he buy with the shareholders money !!
Wrong, CEO can exercise SOME (not ALL) of his stock options to lock in profits. If you go back and dig up some TPX history, their Execs sold at $58 after 1st qtr earing. Executives and employees do that all day long. This is considered normal and healthy when you gained a huge profits. Look at where TPX is now, $69.
The bottom line is the number of available to buy outweights to the number sold.