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

To: rudedog who wrote (47401)	2/18/2002 10:02:41 AM
From: im a survivor	Read Replies (1) \| Respond to of 64865

<<A CEO is not the same as you or me - he or she makes a statement about the company with every action. If this was a "measly" transaction, why not exercise and hold just to make the point that the stock is undervalued? >> Ever hear the term, better safe then sorry.......ok, follow me here...it has nothing to do with faith in the company....it has to do with personal finance....if he was giving a vote down in confidence, he would be selling some of those 55 million shares he has....he is not, and additionally, the company is buying back shares on the open market. The reason for Mcnealys sale is like I said...personal finance.....the options were .88 cents...as soon as they are excersised, the tax bill is due based on the CG gained from .88 to wherever he sold......now, with 55 million shares still sitting, why on earth would he not do the proper and diligent thing and sell upon excersise, take a nice profit...like over 1000% I think... and set aside some $$'s to pay his CG tax......this says nothing about confidence in the company...it is personal finance......I think 95% of financial advisors would recommend the exact same thing...and it wouldnt even matter what company we were talking about....with so many shares still on the table, it makes ZERO sense to not sell the options he excersised....sure he could gain, but he could lose, and if he did lose, the loses would be greater due to the cg tax being based on what he excersised at....I call it smart and prudent investing...no reason to take chances when you have a profit from .88 to $11 on that many shares, but still have 55 million shares on the table.....take that profit and run, most FA's would say....heck, if he was that worried and giving a bad vote of confidence, he would be selling most of those 55 million shares, and not letting his company buy back shares.....anyway...I see your points and many make sense, but IMO, this is a simple, safe, prudent personal finance move, and does not reflect how he feels about the company....if anything, it reflects a positive outlook not negative.......he is only selling his excersised options which is smart to do.....keeping 55 million more shares on the table and having company buy back more on open market...that reflects a positive outlook to me.....lets not mix up, guidance/outlook with personal finance.......why on earth with 55 million shares, would he excersise and not sell.....why take such a chance when you have a mucho grande profit, and 55 million shares still on the table........take that nice profit and run like the wind....I wish I had his problems <ggg>....