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 : KLA-Tencor Corporation (KLAC) -- Ignore unavailable to you. Want to Upgrade?

To: Xpiderman who wrote (1101)	4/6/1998 10:58:00 PM
From: 5,17,37,5,101,...	Respond to of 1779

<<I think if the insiders are really bullish with KLAC they don't need to exercise options, since these options are not aging to expire anytime soon.>> Correct except in the case of nonqualified options where analysis is somewhat different. Exercise now locks in a tax bill. Leo Chamberlain obviously expected the shares to appreciate from the November levels because the equity offers tax free appreciation in perpetuity while the options which must be exercised at some point carry a higher and higher tax bill until expiration. At $37 the stock is below the price at which he exercised. Your comments regarding limitations on insider activity due to acquisition are well-taken. I do not have a position in KLAC but am considering at this price or lower. Would appreciate any feedback on the fundamentals. Jackson