Oh Pierre...there you go again! You must have been "out of town" as this is old news and was posted previously (See below). The 10,000 sale you're indicating was made some time ago to cover the tax due on exercised shares that were held!
To: +NEIL MACK (2769)
From: +NEIL MACK
May 13 1997 2:57AM EST
Reply #2770 of 3162
To All....Have information regarding insider trading of Presstek stock. Quite a bit of exercising of options, due to expire, and then holding on to the stock, has been happening recently with Presstek!
Two months ago, Chairman and CEO exercised 50,000 shares, paid all the tax on the gain and held on to all 50,000 shares.
Exercising and holding of the stock has happened more than once in the past few months, as form 4's were filed when the stock was low. (Note, although form 4's are public record, they are not edgercised and often go unnoticed.)
On Friday, Company Senior VP of Engineering filed form 144 and exercised 20,000 shares due to expire July 1, 1997. In order to pay the tax on the gain....(which is the differance between the low exercise price and the actual market price when exercised), he had to sell 10,000 of the shares while still retaining 10,000, which he now owns outright. Remember, when shares are exercised, all tax on the gain over the exercised price is due immediately, no matter whether the stock is sold or kept. The drawback is the number of shares outstanding is increased.....which can dilute the stock. There are other options also coming due on July 1st. They WILL BE exercised, as no one would be crazy enough not to do so, based on the low exercisable pricing they originally were granted at years ago. Sure hope they are can afford to hang on to them without selling the stock!
I wonder if the selling of 10,000 of the shares Friday, carried over to the trading Monday, causing the 3 point drop! Great timing if you ask me!
Neil
6-03
PS...Did you note the 100,000 share trade about a week ago. Wonder if that was Bob Verrando exercising to own shares? It was not a sale. |
