Re: Another 9-11 conspiracy

[Jim Devine <jdevine03@xxxxxxxxx>]

On 7/19/06, Jayson Funke <jfunke@xxxxxxxxxx> wrote:
> When the Boss Gets Option Grants, It's Time to Buy
>
> July 18 (Bloomberg) -- Want to profit like a chief executive officer?
> Then buy shares in their companies as soon as the CEOs are given stock
> options.
>
> An investor who purchased shares of companies, including Advanced Micro
> Devices Inc. and Yahoo! Inc., after they disclosed option awards and
> sold the stock three months later could have beaten stock market
> benchmarks by 5.2 percentage points annually from mid-2002 through 2005,
> data compiled by Bloomberg show. Holding until 180 days after the grant
> beat the indexes by an average 4.2 percentage points, according to the
> examination of 4,290 grants made by 1,700 companies.
>
> ``If these grants are a heads-up that a stock will rise, then investors
> should pay attention,'' said Byron Wien, chief investment strategist at
> Pequot Capital Management in New York, ...

right. the issuance of options is likely a sign that the stock price
will go up. But relative to that trend, the exercising of options
should depress the stock price.
--
Jim Devine / "You need a busload of faith to get by." -- Lou Reed.