Capstone Companies Inc (CAPC)

[buchro]

No mike, I am not wrong, for several reasons.
1) Exercising a stock option is not the same as a normal purchase. Why did he choose to exercise the option now, even though he has to pay taxes on the exercise this year? The most likely explanation is that he wants to make sure he can own the shares now and sell them before the price goes down. If he expected the price to keep rising, there's no reason to exercise the option. He could have waited until next year or the year after and sold it at a much higher price, and pay taxes later rather than now. In reality neither you nor I nor anyone else knows why he exercised the option now. It is not correct to assume that it shows confidence in the future stock price
2) even if it did mean that this director has confidence, it doesn't mean that ordinary shareholders are confident in the management team. This director is part of management. So it makes no sense to say that because management exercised an option, shareholders are still confident in management.
3) I didn't say that shareholders HAVE lost confidence because of the delays. I said they MAY lose confidence. Obviously I didn't mean that everyone is going to stop buying the stock. That would be ridiculous
4) the stock has dropped from around $2.50, when expectations were high that shipping would start soon, to $1.87 as I write now, possibly because of the latest shipping delay, although of course other factors can affect the stock price.
Overall however, I'm still long as I have been for 15 years, and I think the price will go up when the mirror does eventually ship