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Technology Stocks : Webvan Group (WBVN) -- Ignore unavailable to you. Want to Upgrade?

To: Tomato who wrote (301)	1/3/2001 2:52:55 AM
From: EL KABONG!!!	Respond to of 464

Tomato, It would be nice if insiders stepped up to the plate and bought some shares on the open market to make us believe that the company isn't headed to the trash heap. Not a ghost of a chance of that happening, in my opinion... Wonder whether we'll end up with more than zero when this plays out? Tomato, Tomato, Tomato... Ever the optimist... <g> Just teasing you a little bit... In times like this, we've got to maintain a good sense of humor. <g> I never had any shares of WBVN, and probably never will. I posted here only because a good and trusted friend (MrB) has/had shares. I'm not sure if he ever sold or not. According to Vickers, insiders have only 4 transactions in the last 6 months, and all of those were sales (almost 2M shares, most of that by one person). S&P carries a SELL rating on the stock. The outlook is gloomy at best, at the moment. If it were my money that was at risk here, I'd have sold last week for the tax loss. As it stands right now, not knowing your entry price, you can either salvage a few pennies per share, or hold on and pray. Unless you're either a masochist or an extreme risk taker, I wouldn't be averaging down anymore. <g> Best wishes to you however you decide to play it. KJC

To: Tomato who wrote (301)	1/3/2001 8:01:33 PM
From: Bret Masterson	Read Replies (1) \| Respond to of 464

There's really little reason to expect insiders (operating execs. or VCs) to buy any shares on the open market: 1)For the most part, the executive insiders are equity rich and cash poor. Also, since the stock has dropped so signficantly, there's a good possibility that many of them are actually in financially difficult straights (e.g. borrowing money from specialized financial firms based on their "paper networth" which has no evaporated, leaving them with large debt overhang. 2)Financial insiders (VCs, etc.) also would not buy on the open market, given the fact that Webvan will need to raise additional funds. They know that if they really do want to invest additional money in the company, they can do so a better risk/reward ratio by waiting, and perhaps investing in some type of convertible perferred shares which protect their downside and maximize upside (of course, us regular investors won't be allowed to invest in those types of "advantaged" securities.