Exten Industries (fka BB: EXTI)

[Patricia_1]

Continued posts re Officers' Stocks post #61

By: rickj_65
30 Nov 2003, 02:12 PM EST
Msg. 17704 of 17706
(This msg. is a reply to 17674 by stillpursuing.)
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Stillpursuing

I must apologize for breaking the news to you that your recent comments regarding insider transactions can be interpreted as misleading to investors here. What I should've said simply is "you are wrong." However, because you posted excitedly (some call that hype...ESPECIALLY WHEN USING CAPS) that the officers are BUYING and ACCUMULATING stock, when they are merely being compensated for services in stock, I believe that qualifies as being misleading...albeit unintentionally. Accumulating - yes; receiving compensation - yes; buying - no.

Having clarified that, I want to thank you for your advice, but personally I will "read up on my stock options as compensation" when they apply to the discussion at hand. And I assure you, I doubt there are many on this thread who have read the SEC filings on this company as many times or as thoroughly as myself.

Perhaps you could help me out and please point me to the SEC filing which indicates that these Form 4s are stock options? In fact, don't waste your time because they're not there. You see, this is where I DID read "stock options as compensation." If the filings did apply to stock options, you'd see the "derivatives" section of the Form 4 filled out appropriately. More on that here...
http://ragingbull.lycos.com/mboard/boards.cgi?board=EXTI&read=12276

The transactions in question are common stock acquisitions (a misnomer IMO) where common stock is taken from the company's outstanding shares not on the market, granted to the officers as part of their compensation as specified in the SEC filings, and they now comprise part of the float on the market. This is very, very different from an officer of a company taking his own cash and buying outstanding shares from the float - thus decreasing the theoretical size of the float and also adding the boost to investor confidence. This is what I believe you are implying in your posts when you post in caps that the officers are "BUYING and ACCUMULATING" and that is why I'm spending this energy correcting you.

In my e-mail to Greg Szabo, I asked him to clarify to me where the provision was that called for a $.07/share purchase price because I couldn't find a warrant or option provision that called for that price (note again - there is none) and the common stock at the time was trading for around $.30.

I had asked how officers could purchase stock at such a discount and that is where his comment "He was not given stock at a discount as the stock was trading at this price at the time" applies. For the transaction in question the price was $.07 which corresponds to the historical stock price in June-Aug.

If you still don't believe that you've misinterpreted the transactions, this is what you should do for your benefit as well as others on the board who you've unintentionally confused or possibly misled...

Call or write Greg Szabo and ask these questions...

1) Were the recent Form 4 transactions related to officer compensation in the form of stock options? (His answer will be "No")

2) Were the recent Form 4 transactions related to officer compensation in the form of common stock? (His answer will be "Yes").

3) Did the officer purchase this stock on the open market? (His answer will be "No")

4) Did the officer receive these shares from the company in lieu of compensation for past services performed? (His answer will be yes).

5) Do you think it is correct to characterize these transactions as purchases? (I'll be interested in hearing his answer to that one).

Then forward this post to him and ask him to tell you where I've misstated or misinterpreted any fact.

As I stated previously, it appears to come down to semantics. You believe that these transactions qualify as insider "buys". I personally do not believe being compensated for services in common stock qualifies as a "buy". A purchase is a financial transaction that I do by exercising a choice. The officers do not have this choice. It's not like the officers are given a wad of cash and have the choice to either bank the money for personal use or purchase more company stock. These are transactions that are going to take place with the officers continously because that's the way they are compensated. It is no more or less bullish an event than any previous or future Form 4 filing of like transactions. And that is precisely why I feel posting that the officers are buying the stock is not only wrong, but misleading.

Regards,

Rick

http://ragingbull.lycos.com/mboard/boards.cgi?board=EXTI&read=17704

By: rickj_65
30 Nov 2003, 02:15 PM EST
Msg. 17705 of 17706
(This msg. is a reply to 17704 by rickj_65.)
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Stillpursuing - Another thing

If you should happen to e-mail Greg Szabo, please CC me on [e-mail].

If I am wrong you will get the most sincere apology from me on this board. And if you are wrong, I won't say a thing.

Regards,

Rick

http://ragingbull.lycos.com/mboard/boards.cgi?board=EXTI&read=17705

EDIT: I will update this information as it is clarified from the RB posts