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Technology Stocks : Stratex Networks, Inc. (STXN) -- Ignore unavailable to you. Want to Upgrade?

To: Arrow Hd. who wrote (1528)	8/13/2003 8:59:16 PM
From: Rob Preuss	Read Replies (1) \| Respond to of 1762

I don't fully understand it but... From recent SEC filings, it seems that 4 directors each acquired 10,000 shares of STXN on 8/12/03 by exercising non-qualified stock options at an exercise price of $3.40/share. It does not appear that they sold but, instead, are simply holding these shares for future appreciation. Now it certainly seems that these could have been expiring options, and that may have spurred the purchases. But, if these options were "underwater" (that is, if the $3.40 strike price was above the market price), they could have done better buying on the open market and letting their options simply expire. The fact is, recent trading has varied from around $2.75 to around $3.50... if they simply let their options expire and put in a limit order to "buy" at say, $3.00/share, they'd have done a little better for themselves. On the other hand, their action puts $136,000 in company coffers (rather than simply in the hands of investors) and gives about the same "vote of confidence" as an open market purchase at roughly the same cost to them... so I suppose that I'm grateful they decided to exercise their options. Anyone have a different take on this? Rob