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Biotech / Medical : QDEL - Quidel more quick diagnosis -- Ignore unavailable to you. Want to Upgrade?

To: R. Jaynes who wrote (1493)	7/9/1998 7:33:00 PM
From: Mark C. Livermore	Read Replies (1) \| Respond to of 1693

Have you seen the proxy statement yet? They are going to swap Mr. DeBruin's current options for over 1.3MM options. Again, like at his last company Somatogen Mr. DeBruin has virtually none of his own money on the line. He only owns 1500 shares outright. I believe this creates a very bad dynamic inasmuch as he make a fortune if QDEL goes up and loses nothing if QDEL goes down. Mind you that at Somatogen investors only received a 3% compound rate of return on their money over almost a four year period. Am I alone in thinking this or is it permissible in 1998 for executives to have tremendous potential rewards dangled in front of them in exchange for their not undertaking any financial risk whatsoever?

To: R. Jaynes who wrote (1493)	7/10/1998 8:48:00 AM
From: Mike Relyea	Respond to of 1693

R. Jaynes, Here's what Peter Lynch said about insider buying in his book ONE UP ON WALL STREET: "There's no better tip-off to the probable success of a stock than that people in the company are putting their own money into it." "When insiders are buying like crazy, you can be certain that, at a minimum, the company will not go bankrupt in the next six months. When insiders are buying, I'd bet there aren't three companies in history that have gone bankrupt near term." "But there's only one reason that insiders buy: They think the stock price is undervalued and will eventually go up." Mike

To: R. Jaynes who wrote (1493)	7/20/1998 2:43:00 PM
From: Clarksterh	Read Replies (1) \| Respond to of 1693

Spoke to CFO (Burke) about insider buying. (There were 6 VP or other officer purchases in the last 2 months of between 1100 and 1800 shares each.) I asked him if it was the result of a new company policy which requires that high level managers own shares, and he said no, 'We collectively agreed that it was a good long term investment.'. While this isn't as good a sign as each individual officer making the decision independently, it is still a pretty good sign (whereas if it were a company dictum, it would be much more suspect). I agree that they aren't huge purchases, but on the other hand this is not a huge company, so it is probable that most of the VP's aren't making huge salaries and thus can't afford large purchases. Clark