To: Scott Mc who wrote (13 ) 4/22/1998 2:00:00 PM From: Johnny X Respond to of 15
Everybody - just a quick response to the insider trading post, since it's on this thread, I'll answer it here: G. Kwong is no longer an insider, so it's unclear why he's filing as an insider. He was an executive with the company, but isn't any longer, one would expect he might sell his shares. It may be that there's a period of time after one leaves a company that they must continue filing. G. Wing was a director, likewise no longer with the company. S. Lew, is the CFO, I spoke to him about why he sold some shares (not that many, imo) this year, and his explanation made sense. I don't feel justified in posting it, it's basically a private matter. Which brings us to the options: employees are compensated for their work partially by options. To exercise these, they have to pay a fixed price; Microsoft, Homebase and a lot of big companies (which started small) give shares or options to their employees, even now, and have created quite a few millionaires. Options are used to attract high-quality people, including those who might focus that much more on the well-being of the company because they have an interest in the company more than just a paycheck. Some people may sell stock to pay for exercising the options. There are deadlines which must be met, that is, if they don't exercise the right to convert the options, they lose them. The shares mentioned in Scott's post include those sold in December of 1997 in a private placement to raise money for product development and increased sales efforts to place the product in stores (which they are succeeding at very well). They were issued the first quarter of 1998, but are restricted from being sold at this time. A good reason for a safe deposit box. Everything looks fine. Hope things are going well for all of you, also.