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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: SC who wrote (42624)	1/8/1999 8:48:00 AM
From: Elwood P. Dowd	Read Replies (1) \| Respond to of 97611

"Huge rallies in the techs as we speak!" sez Maria. YESS!!! GO CPQ!!! sez El

To: SC who wrote (42624)	1/8/1999 8:57:00 AM
From: Lynn	Read Replies (1) \| Respond to of 97611

Thank you, Shawn. The cost of the options had slipped my mind when I made my posting yesterday. I'll be sure to check this. I don't have time to look into things until this weekend [the handle of my snow shovel broke so I have to go shopping for a new one in a bit]. Are you interested in what I find out? Regards, Lynn

To: SC who wrote (42624)	1/8/1999 9:04:00 AM
From: rudedog	Read Replies (1) \| Respond to of 97611

shawn - Your description of what choices are available to CPQ executives is incorrect on several points. When exercising stock options, you have several options to sell of the expired shares: * all (if you think the stocks will not perform well), CPQ grants 'non-convertible' options. That means that executives have NO CHOICE about selling expiring options - they are 'use it or lose it'. They can not be converted to stock under any circumstances. If they don't sell the options just expire. * partial (if the stock has appreciated a lot, just sell enough to cover the cost now and cover tax before the tax time next year IF they are taxable type) See point above. This is not a choice for non-convertible options. * none at all (if you have cash and very bullish) Not right - if they don't exercise at expiration, the options (and all of the potential profit' just evaporate. Another point to consider is that insiders only have a few 'windows' when they can sell - these occur right after earnings announcement. So they also can not 'pick the high' - they pretty much have to take luck of the draw.