CRIS, Curis (formerly CBMI) Message Board

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Biotech / Medical : CRIS, Curis (formerly CBMI)

CRIS 1.230

-7.5%

Nov 17 3:59 PM EST

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To: WHL who wrote (223)	10/14/1999 4:05:00 PM
From: WHL	Read Replies (1) of 668

Management & MM's having games IMO. Correcting prior post. I believe that this precipitous stock price drop is with the blessing of management. Its purpose is to permit the conversion of hundreds of thousands of stock options into stock with virtually no capital gains. Thereafter, when the stock goes up, the recognition of gain will be deferred until such time as the stock is sold. This drop permits the conversion to be virtually tax free. That's a lot better for management than waiting for OP-1 approval and paying capital gains on the difference between the stock price then ($20?) and the option exercise price (of $2 or so). Moreover, the CG tax payment to Uncle Sam on a gain from a conversion is due in the year of option exercise- instead of the year that the stock received is sold... So that means the stock price should recover soon due to (1) to the upcoming forum in NY, (2) the rapid approach of OP-1 approval and (3) the release of this artificial downward price pressure once the options are converted...

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