Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Applied Micro Circuits Corp (AMCC) -- Ignore unavailable to you. Want to Upgrade?

To: Ibexx who wrote (1610)	10/6/2001 4:54:02 PM
From: techanalyst1	Read Replies (1) \| Respond to of 1805

biz.yahoo.com He's been exercising option grants since April for paper gains (which are taxable if not offset with other losses) next April. I don't think of it as a 100% sure fire sign that the stock won't go lower. David Weatherall (cmgi), John Roth (nt), David Oros (aeth), Jill Barad (mat), Bill Coleman (beas) are among those who have in the past exercised options and/or bought shares and held while the stock went even lower. But it's obviously closer to the bottom than the top. If amcc drops to 4 from here that's greater than a 50% move down, so I wouldn't just buy the shares because the ceo is. (In fact the stock is down 50%+ from when he started exercising). He's got a long term view from the looks of his exercising shares only 6 cents itm.... and amcc is definately not cheap by historical measures. I'm still quite happy to see a ceo exercise this many shares and buy on the open market. Lord knows many have made enough selling on the way down. What are they going to do with a bunch of cash in the bank earning 2% interest anyway? If they don't see that the company can outperform cash then why should we? That's seeing amcc go from $6 to $6.12 (or at current prices to less than $9) in a year. That's all it has to do to outperform cash. That's it! Think it can do that? Then buy the shares, but be prepared to possibly see the shares drop to $4. Even if it's bottomed, it might just not do a whole lot till earnings improve (and everyone who bought and held from up higher sells when they break even), but if it just bases you can write calls on it. Actually it might be nice to see a long period of going nowhere. It might encourage long term holding and discourage people from watching every up and down tick. Sanity in the stock market might be a nice change. TA