AGT Food & Ingredients Inc 5.375% Pfd Restricted 4 Month Hold T.AGTPRA

Get ready for a huge amount of insider selling...

[mountainpose]

I'm going out on a limb here but I believe the huge number of options exercised yesterday will result in significant insider selling as the options were exercised at $12.71 with at least 300,000 stock options exercised. The capital gain in Canada for public corporations reads as follows; "The general rule is that the employee has to report a taxable employment benefit in the year the option is exercised. This benefit is equal to the amount by which the FMV of the shares (at the time the option is exercised) exceeds the option price paid for the shares. When certain conditions are met, a deduction equal to half the taxable benefit is allowed". Treated as income and added to annual employment income results in a huge tax liability to the employee. Some shares are usually sold (unless the employee has gobs of cash lying around) to pay the tax. It's also too risky not to sell the shares. (Remember it's at the time of exercise and not at the time of sale. Nortel anyone?).The liquidity of AGT is low so hopefully the sales will be done rationally over a number of days. I would also predict a set of new stock options will be granted shortly. I'm also curious as to whether or not the 30 day rule prior to earnings release applies to stock options? ( The sale will settle after earnings are released so the trade is good). I must admit I do not like the timing though.Finally I purchased 1500 shares today as I said I would if earnings were decent. I was not bashing or bearish. I wanted to "see the money"first. I'm O.K but not happy with what I saw today. Good luck folks.