House Keeping...
Read through Amended Annual Report today 10-K...
corporate-ir.net
<(1) Includes options to purchase shares that are exercisable within 60 days of June 30, 2000 as follows: Mr. Simon: 59,166 shares; ; Mr. Nelson:186,000 shares;
Mr. Zionts: 222,500 shares;>
Adding up all of MZ's stock and options he had about 800,000 shrs prior to his sale last week of 222,500 shrs. This sale represented about 25% (which is nothing IMO) of his total WSTL stock holdings. PRIMARY REASON...DIVERSIFICATION! Also provided WSTL with about $1.3 million cash which is well needed. (J. Nelson's sale also provided approximated $600,000).
Speaking of CASH...WSTL has secured a line of credit of $30 million from LaSalle and is almost done securing an additional $15 million. There are NO CASH PROBLEMS for the rest of the fiscal year!
AS for those saying WHY did MZ sell SO MUCH stock and that by him selling means he believes the stock is going to go down are completely wrong. When WSTL is $30, $40, $50 or higher, I suppose those same people will say what an idiot he was for selling so low? MZ can't just go online and sell his WSTL stock as we can and therefore tried to time his sale after releasing spectacular earnings figuring that by the time he sold the stock would be well into the $30's and on its way up to NEW HIGH's. Unfortunately, he did not know that the week he filed to sell would be the THIRD WORST WEEK IN NASDAQ HISTORY!
So lets take a look at some of WSTL's peers:
Company Current High % down % down (7/25/00)
WSTL 22 3/8 40 3/4 45 25
EFNT 64 186 3/4 66 58
CMTN 72 125 3/4 42 32
COVD 16 66 5/8 76 73
NPNT 12 39 70 70
AWRE 35 5/8 67 48 21
PDYN 27 5/16 55 51 45
SO WSTL IS NOT DOING TO BAD. AS OF LAST WEEK, WSTL WAS ONLY 25% OFF FROM ITS HIGH. MZ SELLING HAS NOTHING TO DO WITH WSTL'S SELL OFF...UNLESS HE CAUSED THE OTHER STOCKS AND THE WHOLE NASDAQ TO SELL OFF?
After WSTL's latest quarterly report I have NO WORRIES about WSTL's future. As a matter of fact it only made that light at the end of the tunnel become that much brighter...TRIPLE DIGIT SHARE PRICE!
However, I am concerned that the Board of Directors fail to replace MZ's shares by way of GREATER BONUSES & OPTIONS to make sure that he is around to sell those too! Imagine if MZ left WSTL. Then all those people screaming at him now will really have something to scream about as the share price goes to $1...
So as the Nasdaq goes down and WSTL follows MZ is a loser (Yahoo board) but when the Nasdaq goes up and WSTL follows he's a HERO...HUMMM???
GO WSTL! |
