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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 76.11+0.9%Nov 21 9:30 AM EST

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To: craig crawford who wrote (12024)2/2/1998 4:47:00 PM
From: The Phoenix  Read Replies (3) of 77400
 
insiders sold more than usual during the last few months. I understand that insiders only have certain times to sell and sell all the time. The key is to watch the amount and trend.

Craig, Could the end of the year/beginning of the year have anything to do with the activity.

End of the year employees will sell Non-Qualified SO's if they excersised a bunch of ISO's earlier in the year. Since they're already exposed to AMT the Income from NQ's wouldn't make a difference on the taxes. Therefore any CPA or financial planner will tell you to take the money and sell the NQ's before the end of the year.

Beggining of the year some will sell since they may have made some big purchases during the end of the year which need to be paid off. Rather than selling at the end of the year some employee's will wait, pay a bit of interest and sell at the begining of the year. This way they don't impact 97 taxes which may already be high due to sells earlier in the year. Net result will be a bit of a bubble in insider selling in January.

Finally, CSCO insider selling, I expect, will continue to increase for the next couple of years since there was such a huge hiring bubble a couple of years back. More employees are vested now which means more will be balancing their portfolios.

Gary
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