To ALL: Mr. Emptor has posted in a similar fashion on the Yahoo thread
during the last two weeks. I thought you and others on this thread might be interested in the considerate response of a Genzyme representative that follows:
"I am responding from shareholder services at Genzyme, regarding insider trading. I prepare and file the Form 4s for officers and directors of the company. I recognize the forms are sometimes difficult to decifer, so, based on these filings, here's a summary of
insider trading activity from Jan-June '98.
The Chairman of the company, Henri Termeer, has increased his holdings in GENZ by 123,692 shares. He purchased 130,000 shares from the exercise of stock options that were expiring this year and 392 shares from the employee stock purchase plan program. He has disposed of 6,700 shares in a gift of stock. Since his stock options were granted and priced 10 years ago he purchase those shares below the current market price. Not only did he purchase the shares outright, he paid a hefty tax bill at ordinary income tax rates on the difference between the exercise price and the current market price of the shares. He is HOLDING those shares.
The following gives you a summary of the transactions that have taken place Jan-Jun:
Item:Bought - (Sold) - Net Change
1. Termeer options expiring: 130,000 - 0 - 130,000
2. Termeer stock gifted: 0-(6,700)-(6,700)
3. exercise of expiring options: 14,000 - (14,000) - 0
4. other option exercises/sales: 20,060 - (20,060) - 0
5. employee stock purchase plan: 5,889 - (1,435) - 4,454
6. shares sold: 0 - (4,899) - (4,899)
TOTAL INCREASES(DECREASES):
Shares bought: 169,949
Shares sold: (47,094)
Net change: 122,855
Number 5 above includes 1,865 shares that aren't reportable as purchases but subsequently get included the next time a person has to report.
From January through June '98 directors and officers trading activity has resulted in a net increase in their ownership by 122,855 GENZ shares.
The form 4s don't give you the whole picture (i.e. WHY transactions may take place, such as the exercise of options because they are expiring). It can help if you look at both sides of the transactions. I hope this helps clear up some concerns.
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