November 28, 2011


Eric Wachter exercised yet another slug of stock options last week. See here for the filing. Over the last couple of years, Dr. Wachter has exercised about 1.7 million shares. His average exercise price has been approximately 94 cents.

A quick 'n dirty analysis of management's holdings to date is below (rounded to the nearest thousand). These figures may be inaccurate (read: wrong), but I tried my best.

  • Dr. Wachter continues to exercise options at favorable share prices; and,
  • There is a disparity between stock holdings (versis stock option holdings) of the management team members. As I wrote in my post entitled O Captain, My Captain, there are differences between the team, such as net worth, contribution of in kind assets as the start of the venture, and personal situations related to living style, number of children and the views of their spouses on risk.
Dr. Wachter's continued stock option exercises are telling sign.

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