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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Dan3 who wrote (170123)	8/27/2002 9:18:32 AM
From: GVTucker	Respond to of 186894

Dan3, RE: While at AMD...almost no sales for over a year. I have never before witnessed such an anomalous divergence in over thirty plus years in this market of stocks. Do note the amazing timing of Hector's purchase. What is significant about his purchase is the obligation he is under to not sell any for quite a while. I am sure that his package with the company includes generous stock options...but I also suspect that he does not expect the average price of AMD to stay anywhere near the prices that he paid, in my mind that is the only sane reason for his purchases. Because of the close scrutiny that "insider" are getting, especially now, he is "married" to those share. I suspect that the marriage will be a very happy one. First, note that while it is correct that there have been few insider sales at AMD as of late, there weren't many shares owned by insiders in the first place. As of the most recent proxy back in March of this year, of the total of 7.7mm shares beneficially owned by management, 94% were stock options and not shares owned outright. Mr Ruiz is listed as owning 1,004,000 shares. Of those, 1,000,000 shares are due to stock options and not outright shares. Most corporations would consider his recent purchase of 24,000 shares almost an obligation given his new title of President, CEO, and COO. And while he may be "married" to those shares, that isn't any different than any insider at any time. Insiders are prohibited from taking short term profits, and given how easy that particular statistic is to track, you'll rarely see insiders bending that particular rule. Now if you wanted to see something really significant, you'd want to see Jerry Sanders exercise options and actually keep the shares for a change.