FormerXBC Inc XEBEQ

RE:RE:RE:RE:RE:RE:RE:RE:Here is a Recap on Insider Buys Filed Today

[whognu1]

HonestAl wrote: Whognu, regarding a CEO selling $10M in stock, your post shows how large a part of investing education is.  No insult intended and i don't claim to know it all.  But you cannot see this sale and  instantly say he has no confidence in his own company.  There are many reasons to sell, including tax on options.  

I have not reseached his disposition but consider this ...."Under the current employee stock option rules in the Income Tax Act, employees who exercise stock options must pay tax on the difference between the value of the stock and the exercise price paid." 

Perhaps the CEO was getting nailed and needed cash flow for taxes?  I dunno, but you cannot blindly assume the worst.  

Al:

i beleive you missed my point

i AM assuming the ceo rec'd options at pennies and i NEVER begrudge ANY CEO for taking some cash off the table and de-risking his family after years of building a business

NEVER


my point was simple

IF he sold $10mm he had room to pay some tax (ok, a lot of tax!) and IF he wanted to signal all was well at XBC then a $1mm re-invesment would have got his point across with gusto


the fact he didn't and was allowed to buy some (showing he was not in a quiet period awaiting news of a company changin event for example) gives me pause

like you, l am investor, likely of a different stripe, looking for the same result; bringing money home for the family


good luck to you