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f2wbard

05/20/03 10:48 PM

#27157 RE: ed_ferrari #27148

Good point Ed. Plus, he has a huge Alternative Minimum Tax obligation based on the excess of the Fair Market Value over his cost. That FMV is established at exercise and if the stock drops to $5 per share it's tough cookies. You still owe the tax on the big number. I would bet that his tax obligation will exceed his $250,000 cost. It can quickly wipe you out, as one poster explained to me about 6 months ago.

I'm not an accountant, so my apologies if the facts aren't straight.
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bulldzr

05/20/03 11:08 PM

#27163 RE: ed_ferrari #27148

Ed...If Colson didn't have $250K, maybe he could've borrowed it from some of the posters here that buy and sell and vote those 70K share lots....nah just kidding.

But Colson surely could have bought maybe 20K, or bought and kept even 10K with the proceeds of the other 40K and still paid his taxes and had a nice chunk of cash couldn't he? The gest of jimlur's question is pertinent don't you think?
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JimLur

05/20/03 11:51 PM

#27183 RE: ed_ferrari #27148

Ed, Good point but if we are to have the watershed effect as management suggested and we have momentum as they have suggested why didn’t Colson as a member of the board get the message they sent us? We are holding why can’t he?