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Post by BD on Jul 17, 2014 19:05:28 GMT -5
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Post by harshal1981 on Jul 17, 2014 20:16:55 GMT -5
Yup. All good sign. They all retained as much as they could. Hakan didn't surrender any thing. They all retained about 60% and surrendered remaining for tax liability.
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Post by otherottawaguy on Jul 17, 2014 21:43:17 GMT -5
I will be interested to see how the shorty spin doctors blow this one out of proportion.
OOG
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Post by bradleysbest on Jul 17, 2014 22:33:49 GMT -5
Definitely a good sign! Seems like a buyout is in the works. Your patience will be rewarded.... Stay long my friends!
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Post by BD on Jul 18, 2014 8:03:43 GMT -5
Notice that there's quite a regularity to the sales; it seems to me that a balance was struck between the desire to hold for the long haul and the need for some spending money, in a way that all beneficiaries could sign off on. The few who sold none probably just don't need the spending money, so they're the exception (no problem).
I see this as a neutral "event", signifying nothing more than the fact a lot of these insiders have been put through the wringer for years and finally get a bit of a payday to cut themselves some slack.
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Post by vissertrades on Jul 18, 2014 8:31:15 GMT -5
I believe you owe taxes when vested so if you don't have free cash you sell enough to pay...
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Post by babaoriley on Jul 18, 2014 9:53:27 GMT -5
Could the sales have been set up in advance, for example, like Matt's sale of stock? Again, I don't see how insiders can sell any security at the present time (isn't anything happening behind closed doors, for goodness sakes!). That leads me to suspect they had arranged these sales long ago.
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Post by ashiwi on Jul 18, 2014 10:27:47 GMT -5
Al Mann and some of the lower level execs got their "free shares" and did not sell. Some of the higher up execs got a boatload of shares, over 200,000 and sold approximately half (perhaps to cover taxes or to just diversify) They still own about a quarter of a million shares each. Plenty of shares to make them multi millionaires at some point in the near future. I wish I could take a $million off the table and still retain 250,000 shares for the long haul.
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Post by vissertrades on Jul 18, 2014 10:54:29 GMT -5
Amen, I hold my measly 50K but have a feeling it will pay off.
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Post by liane on Jul 18, 2014 10:54:38 GMT -5
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Post by mannmade on Jul 18, 2014 11:25:08 GMT -5
I can tell you that I spoke with Matt P about this a year or so ago and he told me that there is generally a pre-determined amount that they sell each time they vest as it is a taxable transaction and no one likes to go out of pocket for taxes. Also there are exceptional cases like David Thompson who I believe had to in order to satisfy his divorce settlement. And as for Diane Palumbo she has a history of doing this no matter what company she is with as she has done with others...
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Post by babaoriley on Jul 18, 2014 11:39:36 GMT -5
Plenty of shares to make them multi millionaires at some point in the near future. I wish I could take a $million off the table and still retain 250,000 shares for the long haul. Ashiwi, am I to conclude from your comment that you haven't done that yet? I thought I was dealing with people of substance on this board! LOL! Hey, the market is throwing us a bone today (along with other of my biotechs which have had their noses rubbed in the dirt this week, in part thanks to our Fed Chiefress, who, I believe, is a very sharp cookie. Fed chairs all seem to have one ability in common, they can speak like only a few people can write!
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Post by seanismorris on Jul 18, 2014 12:15:28 GMT -5
Baba,
With regards to the markets throwing us a bone.
The markets just realized that Janet Yellen does know jack about biotech investing. Hmmmm evaluations are stretched? Perhaps because a significant portion of biotech companies don't have a marketable product yet... I know when I was first considering buying MNKD I was focused on the P/E ratio.
/s
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The Honorable Janet Yellen, Ph.D.
Board of Governors of the Federal Reserve System
Constitution Ave NW, Washington, DC 20551
Dear Dr. Yellen:
Thank you for sharing your thoughts recently on the biotech sector. Given your stature, I paid very close attention to your comments, as did most biotech observers.
You stated that biotechnology valuations are “stretched, with ratios of prices to forward earnings remaining high relative to historical norms.”
I just gathered biotech price to earnings ratios back to 1993 using Russell 1000 data, and my data show that the current ratio is roughly in-line with the historical median and is approximately 80% below the peak.
Please tell me what I’m missing, Dr. Yellen.
Respectfully,
Mark Schoenebaum
Senior Managing Director
Head of Healthcare Research
International Strategy And Investing Group
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Post by goyocafe on Jul 18, 2014 21:12:13 GMT -5
More specifically: Initiate an Exercise-and-Sell-to-Cover Transaction Exercise your stock options to buy shares of your company stock, then sell just enough of the company shares (at the same time) to cover the stock option cost, taxes, and brokerage commissions and fees. The proceeds you receive from an exercise-and-sell-to-cover transaction will be shares of stock. You may receive a residual amount in cash. The advantages of this approach are: - benefits of stock ownership in your company, (including any dividends) - potential appreciation of the price of your company's common stock. - the ability to cover the stock option cost, taxes and brokerage commissions and any fees with proceeds from the sale.
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Post by ezrasfund on Jul 18, 2014 21:35:59 GMT -5
Now I wonder just when and how those shares were sold and if they depressed the share price in these low volume days. I also wonder how much of the volume is churn from traders and how much is actually shares changing hands.
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