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Technology Stocks : America On-Line: will it survive ...?
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To: LordDarley who wrote (2137)3/5/1997 5:56:00 PM
From: Joel Sternberg   of 13594
 
>Joel,

If this was cashless exercise, you have no idea what he netted. Suppose he was just selling option stock
with a grant price of 35 for a 36 gross and netted a $1 profit per share? I don't know his particular
circumstances, but when you review the recent SEC filings, the shares sold are dwarfed by the remaining
equity of these officers. This is just a way to get salary.

LordDarley<

Actually, the closer the market price is to the strike price on the option, the MORE bearish it is. Who would sacrifice the embedded value of a 35 strike option on a $36 stock in order to sell the stock, unless they knew the stock was going down. You would be making a better case to suggest that the strike price was especially low, but it would still be bearish since it appears that he sold all the shares after exercise. The bullish thing is to keep many of the shares, so as to lock in any future appreciation of the stock as a capital gain. Good try, though.
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