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I haven't looked into this but off the top of my head and based on what I know of other companies of this type I think your accusation is misguided. If I have the time I'll look into it.
The most likely reason that they have options that were exercised at 0.68 cents is that they were issued LONG ago. Often options are good for many years. Insiders exercising options typically exercise the oldest, usually lowest price options first so that they can retain the maximum flexibility for the longest time and so they don't get stuck holding expired options. The other thing is that in a small company the insiders are typically under diversified. In other words they have too high a percentage of their personal net worth in their own company. Having their salary AND a significant chunk of their investments in one company is a bad plan. Consequently executives in small companies like this often do not purchase ANY shares. They are usually over exposed to begin with and then they typically get yearly grants. I don't know for sure but I would hazard a guess that Bill Gates never bought a share of Microsoft and that wasn't because he thought the shares were going to go down. He just didn't need to and it wouldn't have been a good idea. I own shares of about 20 small companies and the executives hardly ever buy insider shares unless they are a new executive or director. None of this is to say anything about the quality of TDSC management or the share price. I just think you are drawing a conclusion that is not supported by the facts. Rating :
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| Subject | Author | Rating | Time of Post (ET) | ||
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Why are insiders (CEO, CFO and others) being given opti...
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munda51 | Rate it | 24-Mar-09 09:41 pm | ||
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Why are insiders not buying TDSC now? Probably mor...
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munda51 | Rate it | 31-Mar-09 11:51 am | ||
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Re: TDSC insiders buying @ $0.68/share!!!
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fish_discov... | Not rated | 27-Apr-09 09:31 pm | ||
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Further examples of American Corporate Governance ...
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WAS10ASSOC | Rate it | 1-Apr-09 08:44 am | ||
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This management has done nothing good (sales ...
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munda51 | Rate it | 1-Apr-09 09:55 am |
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