CPN: Calpine Corporation Message Board

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Gold/Mining/Energy : CPN: Calpine Corporation

FRO 24.09

+1.8%

Nov 10 3:59 PM EST

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To: jack bittner who wrote (35)	3/7/2001 10:11:20 PM
From: Daniel G. DeBusschere	Read Replies (2) of 555

A CEO who thinks his stock is worth keeping will only sell one half of his options grant at each grant. This amount usually covers the tax confiscation percentage and is plenty for B2 bombers and aircraft carriers. Why sell 100%? Why sell 100% at every grant instance? Someone in his bracket only needs to hold on to the remaining half for 12 months and then any gain is taxed at capital gain rates if he/she chooses to sell after that point. By selling 100%, it effectively says that I can take this money and do better elsewhere. I would like to know where this elsewhere is? It just plain sends a red flag waving directly in front of my face and the rest of the shareholders. I pay attention to it because there is a high percentage that when this pattern is observed, the stock tanks really bad - usually CEOs are not dumb and they certainly know more about the company's internal operations than either you or I.

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