Replies to post #172613 on Biotech Values

[DewDiligence]

ENTA addendum: It's completely legal for an insider to exercise options and hold the shares while in possession of material non-public info.

[jbog]

Luly sold an equivalent dollar amount the prior week (5800 sh x $28) so the only thing I see bullish is that he hasn't sold the new shares at this point.

It isn't like the timing of the transaction means anything because they were fully vested at this point.

[DewDiligence]

ENTA’s CSO has done the same thing on a smaller scale—he exercised and held stock worth approximately $4M last Friday:

http://www.sec.gov/Archives/edgar/data/1177648/000090866214000021/xslF345X03/edgar.xml

As with Jay Luly’s transaction (#msg-95887112), the options exercised by the CSO did not expire until Jul and Dec 2014.

[DewDiligence]

ENTA’s CEO, Jay Luly, sold 5,600 shares yesterday at around $38/sh under a 10b5-1 plan:

http://www.sec.gov/Archives/edgar/data/1177648/000090866214000067/xslF345X03/edgar.xml

Despite exercising options and holding $8M worth of stock on 1/10/14 (#msg-95887112), Luly never terminated his 10b5-1 plan that was initiated in mid 2013. Conducting an exercise-and-hold transaction while a 10b5-1 selling plan is in effect is completely legal (although perhaps it shouldn’t be).

To date, Luly’s $8M exercise-and-hold transaction—and the CSO’s similar transaction for $4M (#msg-95888322)—have worked out well insofar as share price has appreciated 21% since the two executives exercised, likely reducing the cumulative tax burden when these shares are eventually sold.