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Post by agedhippie on Feb 1, 2019 10:02:18 GMT -5
I think I can answer my own question on why they only paid $1.07 per share having just read the Employee Stock Purchase Plan. The stock is sold at " eighty-five percent (85%) of the Fair Market Value of the shares of Common Stock", not at the market price. You would have to be stupid not to buy the maximum possible because you can immediately sell for an instant 15% profit. Worst case you hold it and there is a 15% profit margin built in from day one. That is a risk free $944 gift for each participant. I don't know for sure about this transaction but there's almost always a lengthy vesting period that does not allow the discounted stock to be purchased then immediately sold. I have read the agreement and it's a standard Employee Stock Purchase Plan. You decide how much you want to buy up to the limit allowed and the money is withheld from your paycheck in installments until the issue date. On the issue date the shares are yours (at a rather nice 15% discount) to do with as you wish. There is no vesting period (after all you paid for the shares) and it is ordinary unrestricted common stock. I expect them to sell the discounted shares immediately in the same way that they always sell their stock grants immediately. To be clear. There is nothing wrong with this, it's part of the free money in the benefits package in the same way that 401k matches are. If you don't buy the maximum possible you are leaving money on the table. Personally I have always done exactly the same as them when I have been in a position to buy under an ESPP. What it isn't though is a show of faith in the company - that takes a buy in the open market and at volume.
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Post by boca1girl on Feb 1, 2019 10:14:49 GMT -5
I don't know for sure about this transaction but there's almost always a lengthy vesting period that does not allow the discounted stock to be purchased then immediately sold. I have read the agreement and it's a standard Employee Stock Purchase Plan. You decide how much you want to buy up to the limit allowed and the money is withheld from your paycheck in installments until the issue date. On the issue date the shares are yours (at a rather nice 15% discount) to do with as you wish. There is no vesting period (after all you paid for the shares) and it is ordinary unrestricted common stock. I expect them to sell the discounted shares immediately in the same way that they always sell their stock grants immediately. To be clear. There is nothing wrong with this, it's part of the free money in the benefits package in the same way that 401k matches are. If you don't buy the maximum possible you are leaving money on the table. Personally I have always done exactly the same as them when I have been in a position to buy under an ESPP. What it isn't though is a show of faith in the company - that takes a buy in the open market and at volume. Let’s see how long the executives hold the shares before you accuse them of just taking the quick buck. A 15% discount is very common for an employee stock purchase plan. You also make a very broad statement...”they always sell their stock grants immediately”. I remember many being critical of Rose frequently selling her granted shares in the past, but you can’t say that about the current executive team. I agree that open market purchases without a discount are more meaningful to the street, but I was very pleased to see a coordinated vote of confidence from the executives yesterday. I bet Mike called a meeting and expressed his desire for the team to show support for the stock and the stock holders.
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Post by traderdennis on Feb 1, 2019 11:38:10 GMT -5
Quite a few posters were bashing and begging execs to buy stock. Guess this means all the complaining will now cease and the stock will jump...LOL...sure...will be more than glad to see if this has any significant residual effect a week from now Let’s not get this confused. These execs maxed out a stock purchase plan that gives a 15 percent discount to market price. Doug Ingram of $SRPT recently purchased $2 million in stock on the open market. That would get me excited.
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Post by matt on Feb 1, 2019 12:29:53 GMT -5
I think I can answer my own question on why they only paid $1.07 per share having just read the Employee Stock Purchase Plan. The stock is sold at " eighty-five percent (85%) of the Fair Market Value of the shares of Common Stock", not at the market price. You would have to be stupid not to buy the maximum possible because you can immediately sell for an instant 15% profit. Worst case you hold it and there is a 15% profit margin built in from day one. That is a risk free $944 gift for each participant. I don't know for sure about this transaction but there's almost always a lengthy vesting period that does not allow the discounted stock to be purchased then immediately sold. There is no vesting period for stock purchased under a qualified employee stock purchase plan; once you pay for the shares they are instantly vested. However, certain officers and directors are prohibited from selling stock (however they acquired it) during certain periods, such as between quarter end and release of the 10-Q. The way a qualified plan works is that the employee buys for the lesser of 85% of the fair market value on the date of subscription or 85% of the fair marker value on the date of purchase. The company withholds money at a set rate that takes 27 months to pay for the full subscription. As each paycheck is issued, if there is enough cash in the employee's account to pay for a certain number of shares (as specified in the plan) then the company issues those shares immediately. If the price has declined since the origination date, the employee gets the shares at 85% of the price on the payroll date and if the price has gone up they get the shares at 85% of the subscription price, whichever is lower. The plans are designed to encourage employee ownership and they work very well, especially if the company is a strong performer with a mostly upward trend.
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Post by sportsrancho on Feb 1, 2019 12:51:50 GMT -5
One of my clients was very high up in Abbott. She was in their share purchase program also, we talked about it all the time. She never sold her shares, not until she was getting ready to leave and that was after she’s been there for years.
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Post by mytakeonit on Feb 1, 2019 13:54:57 GMT -5
My question is ... if the employee purchased the shares at $1.07 and sold it today at $1.33 ... when the pps goes to say $20 ... will the employee's tears dilute the Afrezza?
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Post by boytroy88 on Feb 6, 2019 21:18:45 GMT -5
My question is ... if the employee purchased the shares at $1.07 and sold it today at $1.33 ... when the pps goes to say $20 ... will the employee's tears dilute the Afrezza? Don't believe they can sell that quick.
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Post by agedhippie on Feb 6, 2019 23:05:51 GMT -5
My question is ... if the employee purchased the shares at $1.07 and sold it today at $1.33 ... when the pps goes to say $20 ... will the employee's tears dilute the Afrezza? Don't believe they can sell that quick. They can sell any time after the issue date on the Form 4 filing. However, I doubt they could sell today as I think this close to the results their trading window will be closed.
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Post by mytakeonit on Feb 7, 2019 1:10:40 GMT -5
So where did I get all these shares that I have a sell order at $20 come from?
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