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Technology Stocks : Intel Corporation (INTC)
INTC 41.41+2.2%Dec 5 9:30 AM EST

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To: Hightechhooper who wrote (126688)2/6/2001 11:11:56 AM
From: John Hull  Read Replies (2) of 186894
 
HTH, re:"Even the insider selling didn't hurt..."

Just want to make a point of this for future reference. It is my contention that the investment community is not adversely impacted by news reports of Intel senior executives exercising and selling their stock options which are about to expire. It is part of their overall compensation.

Every quarter when these sales happen, somebody screams that it is a signal or that the executives are insensitive to the plights of the investors and should exercise and hold - indefinitely - or at least until the perceived short term valuation crisis passes.

I have never seen credible fact based evidence presented that the exercises by Intel executives has had lasting impact on stock price. I've seen the studies on insider selling/buying in general and agree that some of these studies have shown a link to future stock price movements but those studies did not cover those companies who have routine options exercises over many quarters which is the case with Intel.

Is there any chance that we'll avoid having the next story about Grove, Barrett, Otellini, et. al., and their option exercises published on this thread as some kind of buy/sell conspiracy theory?

I didn't think so.

jh
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