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Biotech / Medical : Sepracor-Looks very promising

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To: Biomaven who wrote (3693)9/22/1999 10:18:00 PM
From: Ed Ajootian  Read Replies (1) of 10280
 
Peter,

Did you see that Barberich the CEO exercised 50,000 options on 8/13? If I'm reading the Yahoo chart right he did not dispose of the underlying shares but is holding them. If so this would indicate that Timmy B. is very bullish on his company's prospects over the next year!

As far as I can figure the only time you would exercise and _hold stock options is if they were ISO's and you were trying to start the 1-yr. holding period so you can get LTCG treatment when you sell the stock. On this transaction, it looks like Timmy B. is gonna owe about $850 K in Alternative Minimum Taxes so you know he's gotta be pretty stoked about the company at this point; otherwise he woulda just kept the options & accepted ordinary income treatment when he eventually cashes out.
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