WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 135.00

-3.7%

1:29 PM EST

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To: docpaul who wrote (15169)	9/29/2000 9:47:40 AM
From: Art Bechhoefer	Read Replies (3) of 60323

The SNDK insider transaction comments on CNBC leave many unanswered questions--so many that one cannot come to any rational conclusion about insider selling or buying. The analysis ignores the fact that SNDK, like many other young technology companies, pays many of its top people partly in stock options, in lieu of higher salaries. If an option is held for longer than a year before being exercised, and if it is sold at a price greater than its cost, it is subject to a capital gain preference, which certainly has a lower tax rate than ordinary income. This is a typical example of insider selling for personal reasons and does not justify a change in analyst opinions from buy to neutral. Just another example of errors that creep into the buying and selling decisions of those who purportedly consider themselves as professional investors. Art

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