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Technology Stocks : C-Cube
CUBE 37.90+0.6%Jan 12 3:59 PM EST

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To: Gary A. Mullennix who wrote (10980)3/4/1997 8:35:00 PM
From: R. Windsor   of 50808
 
What you say is correct, the person does have the right to exercise the option and keep it, but when you do this that person gets caught to AMT Tax (26-28%)Ferdaral and (10%) state, on the colsing price of the stock on the date of exercise. A huge tax burden :(, so most people don't do that if they don't want to just give the IRS money that they actually have not even earned.

R

To all who think that insider selling means nothing, that anyone who knows about
business knows that all options have to be exercised or lost. Anyone who thought
they could double or triple would not sell the stock or at least not in the volume this
stock has seen by both Directors and inside poorly paid managers. (Someone elses
words) But, also anyone can exercise an option so that it is not lost. But, they don't
have to sell it. Even if they are short of money, they can sell a part or borrow against
it. My point anyway is not about the fact that anyone is doing it but that
EVERYONE
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