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Gold/Mining/Energy : Twin Mining (formerly Twin-Gold)
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To: bill who wrote (57)1/21/2002 2:20:49 PM
From: Valuepro   of 613
 
OT) bill, I have a friend who recently retired from a very high position with Sun Micro Systems. Three years ago he retained a financial advisor who had him cash in all his options (worth several million dollars) and make some gifts for tax purposes. This had absolutely nothing to do with thoughts to the future direction of the company or the stock. While he had some shares in other companies, I believe these were all tech related. Anyway, he got out near the top of market before the tech wreck. The point is, many who hold options count these as their single largest form of wealth (assuming "in the money") and are wise to exercise and sell for the sake of diversification. At least that's the story here in Silicon Valley where many of the wealthy prior to the tech wreck were in their late 20's and early 30's. In fact, it was estimated in 1999 that the average home buyer in one of our wealthiest neighborhoods was 34-years old. Some times these were all cash purchases, but the money was mostly from options. Again, the conversion of options to cash for home purchases had little to do with fundamentals of the companies involved.

...just illustrating a few reasons why the sale of options can have little to do with the direction of a company.

Cheers,

VP
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