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Technology Stocks : Wind River going up, up, up!
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To: Allen Benn who wrote (1847)8/31/1997 12:45:00 AM
From: Joe Smith   of 10309
 
If one just looks at the self-interest of WIND's management, I think that the go-(relatively)slow approach indicates a long-term commitment on their part. A lot of investors are put off by the huge interests that upper management has in company stock. A manager looking to get in and get out with a huge profit might push earnings through, cut spending etc. for a nice short-term winddfall on the stock. A more seasoned professional might look at the long run, plan to stay for a while and accumulate a tidy profit in the end. If earnings are pushed through and the stock rockets up, all future Employee stock purchases and option grants are also pushed up, possibly to heights where profits might be slim. Grants and stock already owned would generate greater profits at the expense of future interests. By choosing the slow steady course, the manager gets to keep purchasing a steadily rising stock bit by bit and continue to make good profits for the long term.
Its nice to see the market reward a caring, committed manager as they carefully steer a company forward rather than greedily making hay when the sun shines, unsure of the long-term. This shows great confidence I believe. Remember managers can't really take advantage of price swings the way normal investors can without fear of an ethical smudge.
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