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Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 232.38

+0.1%

Dec 24 12:59 PM EST

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To: Jan Crawley who wrote (4635)	5/22/1998 10:35:00 PM
From: Bilow	Read Replies (1) of 164684

Hi Jan Crawley; About those insider sales... A company I have more than the usual familiarity with (not AMZN) has a habit of restricting employee exercise and sale of stock options as well as employee purchases and sales of stock to certain times. They block employees from doing anything (except good till cancelled limit orders placed earlier) during these times. The employees are well aware that the company stock is over-priced, and get rid of their options pretty much as soon as they vest, despite the adverse tax consequences. The effect on the stock price is that it tends to trend down while employees can sell, then stabilizes when they can't. And then it occasionally rips upward when hype induces another institutional investor to buy a few blocks. That chart pattern is quite similar to the AMZN chart pattern. You can trade that chart pattern reasonably well by being aware of the employee restrictions, and when they come off. Currently they are in a quiet time, I expect it to drop 10% or so as soon as the restriction is over again. By the way, I don't trade the stock as I believe that in my case it could be construed as insider trading. Plus I signed some stuff. Anyway, does anybody know what the restrictions on AMZN employees are as to when they can exercise their stock options, either in the past or in the future? -- Carl

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