HPQ Silicon Inc V.HPQ

RE:RE:RE:RE:RE:Insiders 🙄

[developbc]

Just want to chime in on the July 8 exercising on options...significant taxes are payable. 

CRA tax on stock options:

Under CRA rules when a stock option is exercised it triggers a taxable benefit which is equal to the difference between the exercise price and market value of the shares which is pegged as the previous last trading day closing price. You can NOT postpone the timing of tax payable.

 

After exercising(buying) the shares, one can either immediately sell the shares OR hold onto them but will still be subject to the triggered taxes payable.

DanielHPQ wrote:

My point was that he exercised stock options to get his shares, he didn't sell outstanding common stock. A techncality but an important one.

I actually agree with you. I disagree with the other dudes who are saying the fact that the insiders are selling stock/exercising options doesn't mean anything. I don't know when the options would expire, I don't know their personal financial situation.

The one thing that the people who disagree with us are wrong about, is they aren't aware that executives at HPQ.V are not raking in big bucks in salary expense according to the financial statements. Because they aren't raking in big bucks from the company , it pushes them to divest some of their stock to be able to earn money and pay the bills and so on.

 

sandysouci wrote: sorry, but I DON'T AGREE with what you're saying...

I've looked up the records (on INK Research), and seems that he:

Jul-8-2020: excercised 425,000 options at strike price of 0.07 (stock was trading at 0.30-0.42 that day)

Jul-8-2020: thereby added 425,000 shares to his existing holdings (revised total holdings = 555,750 shares... shares, not options)

Jul-20-2020: sold 400,000 shares into the market at 0.36 (revised total holdings = 155,750 shares)

he then held those remaining 155,750 shares right up to Dec-01, when he sold some (30,000 shares)... he still holds 125,750 shares now

those are the facts

so, if he had not sold his shares on Jul-20, he would be much further ahead... had he sold today at current close price of 0.72, he would have been 0.36 AHEAD, ie., could have gotten DOUBLE what he did!

so he sold far too early, and made a "bad decision" -- even though he supposedly knows everything because he's an insider right???... in fact, he left 0.36 x 400,000 = $144,000 on the table

I don't really see how you can argue against this

my point is that insiders perhaps don't "know everything", they can't predict the future, and very often demonstrate very poor timing with their share sales... try pulling up info on a bunch of top performing stocks... very often you will see insider selling taking place far BEFORE the stock made it's big move up

imho, this can perhaps be explained by the fact that their selling actions are often dictated by factors other than the company's current and future prospects... EG: they might just want to buy something, pay off a loan, etc... or, that they're no better at predicting the future than any of us are

(on the other hand, insiders seem to fare a bit better with shares *purchases* -- if they actually buy shares with their own money, not via options -- based on my own casual observations)

 

 

DanielHPQ wrote:

This is actaully disinformation. He sold 400,000 STOCK OPTIONS not OUTSTANDING COMMON SHARES.

 

sandysouci wrote: you're reading FAR, FAR too much into it... so what?...

btw, "Richard Mimeau" sold 400,000 shares or 72% of his holdings back on July 20th -- at a price of $0.36 -- guess that wasn't so smart was it? what a major mistake he made