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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Think4Yourself who wrote (64683)	4/15/2000 12:28:00 PM
From: Razorbak	Read Replies (1) \| Respond to of 95453

[Off-topic] Ways to Hedge the Lock-up "Q": There are ways to hedge against that market risk. My brother works on Wall Street selling customized equity derivative packages to executives with long positions in their own company stock specifically to hedge against that kind of downside exposure. If those guys in lock-up were smart, they would have protected themselves accordingly. Unfortunately (or fortunately, depending or your perspective) most entrepreneurs aren't very risk averse. Razor

To: Think4Yourself who wrote (64683)	4/15/2000 2:38:00 PM
From: jim_p	Read Replies (1) \| Respond to of 95453

I had the same problem in 1982 when the oil markets were starting to crash and our company had just gone public. Your idea of shorting is a good one, but it's not illegal for an officer or a director of a public company to short his own company. I watched our stock that I got for $1.00 go to $21.00 in less than six months and back to zero. It's not a lot of fun. You can resign as an officer, wait until you don't have insider information to short the stock and lock in the profit. If the stock is 144 stock, the time clock stops while the stock is short. Once you cover your short the 144 clock starts again, you still have to wait the required time period before you can sell the shares you got back to recognize the profit. In 1982 the time period was two years. Don't think that I didn't think long and hard about it. Jim