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Strategies & Market Trends : Drillbits & Bottlerockets -- Ignore unavailable to you. Want to Upgrade?

To: Jorj X Mckie who wrote (8244)	4/18/2001 4:24:14 PM
From: HG	Read Replies (1) \| Respond to of 15481

150M is John Chambers....but i thought he exercised and sold only the the options which were expiring....? And i thought he did it every year....at teh end of the year... Which CFO you talking about ? AMZN ? BTW, I was at Home Depot last afternoon, and I saw this beautiful red Jaguar convertible with personalised number plates, which read - THX JNPR. Was that you ?

To: Jorj X Mckie who wrote (8244)	4/18/2001 4:31:34 PM
From: Original Mad Dog	Read Replies (1) \| Respond to of 15481

Two of my new rules follow: -If a CEO of a company sells $150M worth of stock while the stock is at an all time high, and you own the stock....think very seriously about trusting his judgement. -If a CFO leaves a company that you have a position in. Sell it. I would modify both rules.... 1. If a CEO of a company sells stock that he has discretion not to sell, outside of a regular divestiture program, then take a good close look at the financials and outlook for that company. Actually, the fact that you own the stock means you trust his judgment. If you trust his judgment and he is selling when he doesn't have to, why shouldn't you? (Selling to pay taxes on options which must be exercised or they expire doesn't count). 2. If the CFO leaves and doesn't leave for a better job, run for the nearest bomb shelter. They are either blaming him or her for not letting them cook the books, or blaming him for cooking the books. Or maybe the whole business plan is flawed and (s)he see it but no one will listen. Those are all bad scenarios. The only good CFO-leaving scenario is that the CFO has been so good that (s)he is lured away by a great offer.