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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: craig crawford who wrote (47397)	2/15/2002 8:17:26 AM
From: im a survivor	Read Replies (1) \| Respond to of 64865

<<sunw is seriously underperforming the broader markets and the nasdaq. one factor that doesn't help matters is that the ceo dumped a million shares at depressed prices. like i said, if it means nothing imagine how much better sunw would be doing if he had the confidence to buy some shares instead of dumping. tyco stepped up. it stopped going down. dell has stepped up on more than one occasion. dell has been an outperformer. aol stopped going down and had a nice pop after case bought a million shares. brocade ceo sold a million shares and it's down big today. >> First, the stock Mcnealy sold were options that were due to be excersised at .88cents....as soon as they are excersised and turned to stock, the tax bill is set and needs to be paid. Alot of people got burned on options because they excersised, which created a tax liability, but they didnt sell the stock....they waited, stock went down, and they ended up selling stock for a loss but had huge cap gains tax due because it is based on the price it was excersised at, not what you sold it at 90% lower 3 months later....so, many have learned it is best to sell the stock immediatly upon excersising the options. This ensures you lock in your profit and wont pay a tax bill on options excersised but then sold later for much lower. If you had %% million shares, and you had options at .88, I am sure most would excersise the measly 100k he did, and sell the stock, just to be safe.....plus, he still has approx 55million shares.....this wasnt a normal stock sell...it was options, and because of what happened to alot of people with options. most advisors will tell you to excersise and sell, not excersise and hold...especially if you have 55 million shares left sitting on the table....makes no sens to hold wahtsover. Additionally, you talk about these other companies stepping up to the plate to buy back stock...SUNW is doing that also.....sometime in the last week, they announced they would be buying back their own stock on the open market....so I see sunw the company giving us a vote of confidence by buying back it's own stock, and I dont worry about mecnealys recent sale, as it is very obvious why he did what he did.....he sold options that once excersised lock in your cap gains tax due...with 55 million shares still left on the table, the prudent thing to do was take his million dollar profit and run, leaving the other 55 million shares on the table and setting aside some $$'s to pay the cap gains tax on the ten bagger he received via the options.......very typical....but yes, sunws performance has been quite depressing......I cant say i am thrilled it has not moved and stayed above $15, but instead has trended down...but at this point...i am not selling under $10...I will be patient and hope one day sunw is once again above $20 a share....