Warren-
All of your questions to Doc Stone have been asked and answered in the
last month over on the "Motley Fool" board. I would cut and paste them
here but, somehow, I think I would be wating my time with you guys.
As far as insider selling:
Bloomberg reported that Jack King sold 23,000 shares about a week and
a half ago.
This is the actual transaction:
1- King had 140,000 "non-qualified" options expiring in Dec'96. They
were "exercise or lose" type options.
2- He exercised them at between $1.00 and $2.00 (they had different
price points)
3- He sold 23,077 of them. (Odd number, isn't it ?)
Question: Why 23,077 ? Answer: Because that is exactly how many shares
he needed to sell to raise the cash he needed to:
A) Pay Zitel for the shares and
B) Pay his taxes on the gain realized on their sale.
Mr. King had approx. 300,000 shares before the transaction. He now
has approx. 416,923 shares.
At the current price of $47, his stake is worth $19,595,381.00
After 10 years at Zitel, Mr. King has his ENTIRE net worth in Zitel
stock. He did not choose to take the money and run. He sold only what
he had to, and plowed the rest back into the company he believes in.
That's the scoop on what, when and why. But, of course, the bears will
say "Ahah, King is dumping his stake. Zitel must be up sh_t's creek".
To them I say -"Keep shorting (if you can find any) you all-knowing,
smart-as_ed, egoticical fools."
Steve
P.S. - Here is a copy of another poster on Motley Fool confirming my
report.
Subj: Re: Insider sales of Zitel
Date: 96-11-27 21:01:30 EST
From: Dondonrh
Independent of Steve, we checked on Mr. Kings sale of ZITL shares.
The answers that we received are in complete and total agreement with
Steve's report.
Happy Thanksgiving to all, and a special thanks to Steve CPA for a
great job of keeping us all well informed on Zitel .
Don |
