Tuesday, August 4, 2015

Not Any Harbinger: Merck's CIO Cashing Options -- And Selling Stock -- Likely (Mostly) To Cover A Divorce Settlement

The wires are reporting this as a multi million dollar open market sale of Merck stock on the NYSE.

That is true -- but incomplete. As the footnotes to the SEC Form 4 indicate, the transfers are in part the result of a QDRO, or a "qualified domestic relations order" -- or, in plainer English -- a divorce settlement.

So -- net net, I'd say that none of it reflects any view about Merck's near term prospects -- from Kenilworth's CIO. Separately, the New GC also sold some, under a pre-filed trading plan. Again, no big deal. Just my $0.02. . . Should be yours, too, though.

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