Thursday, December 29, 2005 5:54:08 PM
Yes its nce to own a bunch of options and be able to exercise and turn right around and sell them for nice profit at any time.
But the market looks for confidence in insiders in a corporation. And nothing speaks more about their confidence then when they put their own money into the company stock.
The CEO has $450.00 invested in stock. Does that smell of confidence to you. A broker would not even recommend a stock with such low insider ownership from some of the key personnel in the company.
There is a big difference between putting up $50,000.00 of your own dollars to own a part of your company when you are the CEO, and merely sitting on a bunch of options that you exercise and sell at will.
If the insiders arent going to take the risk how do they convince the big institutional investors to take the risk. Thats probably why there are no institutions to speak of holding this stock, dont you think?
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