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Strategies & Market Trends : WR's Momentum Trades -- Ignore unavailable to you. Want to Upgrade?

To: RichBear who wrote (9722)	3/18/2001 11:31:48 AM
From: RichBear	Respond to of 11130

Here's the story I heard Friday from my accountant.. a silicon valley dot com guy gets a option for 100K shares of his employer co for pennies per share. co goes public and shares are $70 so he exercises in 2000. now he has $7 mil on paper.. stock hits $120 and his wife says sell (no lockout period).. he holds.. on 12/29 after some upheaval the stock is $20 so he figures HOLD IT TIL 2001 IT'LL GO UP. the stock is $3.50 now. so he goes from a $12 millionaire to $350K.. but WTF he got the shares for under $100K. Because he held through the end of 2000 he owes 900K AMT on his $2 million which he doesn't have. wife leaves him, he's bankrupt and of course the accountant wants his money up front.. and just to stick the knife in further, he gets a credit for about $6-700 K that he basically can apply to his taxes at the rate of approximately $5000 per year FOR THE NEXT 100 YEARS OR SO.. I may have some of the exact details fuzzy but that's what he told me. And you thought you lost in the crash of 2000. Bear