One man's opinion on why we should not fear the registration of Steve Rash's options at this time. I present to you the following from the 10K on page 31:
sec.gov
Steven B. Rash entered into a three-year employment agreement (the
"Agreement") with the Company dated July 15, 1995. Pursuant to the Agreement, Mr. Rash is employed as President and Chief Executive Officer of the Company. The Agreement provides for a salary of $135,000 per year with annual increases plus bonuses of up to 50% and an option to purchase 600,000 shares of common stock. In 1997 Mr. Rash's agreement was extended to December 31, 1999. The base salary was increased to $165,000 per year, with a cash bonus of $30,000 to be paid should the Company's revenues exceed $2 million in 1997. Options to purchase an additional 820,000 shares of common stock at $.50 per share were granted. Additionally, options previously granted under the original agreement which had not vested as of December 31, 1996 shall vest evenly over the next three years.
Looking at the 10K it becomes obvious that Steve Rash never registered or exercised any options in the past.
Why?
Because he had no reason to believe exercising them would be financially beneficial. Does he now? Lets hope so. The first 600,000 options Steve will have pay $.68 a share in order to exercise. The second group of 820,000 will cost him $.50 per share. The thing is that Steve would be silly to exercise these options at any price as low as we have been seeing lately. Heck the options are not even registered and dollarone wants people to think Steve has some sinister motive for filing them in an S3?
There is nothing sinister here. Steve wants to make money just like all the rest of us. Is he aware that some of us can and will read a 10k or an S3? Of course he is and it's my belief that he is registering these options simply because he feels the stock price will appreciate enough for him to want to exercise them, or at least some of them.
Please remember that a registration of these options is not a sale.
Even exercising them and turning them into common stock is not a sale.
It's my belief that this is extremely positive because it points out that Steve Rash thinks ABMI will be going much higher than where it has been trading recently.
Lets play devil's advocate for a minute, like dollarone does, and say we think Steve is going to not only exercise but sell all those options. That's 600,000 times $.68, plus 820,000 times $.50.
My friends that is a lot of money. By the time Steve can come up with that kind of cash we could all be long gone we plenty of profits.
I watch the insider trading every week. The only selling in volume that I have seen in the last few years was done by none other than Dr David Summers.
Once again the registering of these options is a positive in the short term because it shows confidence going forward.
Long term it could be a legitimate concern for shareholders.
BTW Dave I bought at .59 today. I did not want to miss out on the opportunity to gain on as many shares as possible on the next ride up.
One last thing before I finish. Dollarone I got warrants from a private placement not options. I have no ABMI options. Steve likes my imput on other investments like CLCK. That is why he will talk to me even when he is very busy.
GO ABMI!
Regards, Jeff
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