Sunday, September 4, 2016

Small Change(s), Actually: Mr. Schechter's $1.14 Million In Pre-Tax Gains, On Cashless Option Exercises, This Past Week


Just some "Easy, Like A Sunday Morning" (Commodores) clean-up here, as I sip my coffee. . .

I've seen a few wildly inaccurate (amateurish) financial media reports, on Adam Schechter's transactions in the securities of Merck last week.

I ignored those -- without comment -- until now.

Here's what really happened: He still holds over 130,000 common shares of Merck, after the cashless exercise and sale. Which is nearly identical to what he held outright, prior to last week's transactions. Moreover, the trigger was likely wholly automated, under his so-called SEC 10(b)5-1 trading plan, on file with the SEC. If the transaction did not conform to that SEC filed plan, the SEC will certainly raise its hand. The fact that he netted $1.14 million (before paying his taxes) should not concern us. [Some media outlets reported that he made over $2.4 million. Those are in error.] So this is just a small diversification of his vested holdings, and reflects absolutely nothing about Merck's prospects. Now you know.

So -- go be easy, this Labor Day Sunday. . . like those Commodores. Church, Synagogue, Mosque, Temple, or just some open water, or a flowered field, or some mountain air -- it matters not -- just be. . . easy with yourself. Smile.

नमस्ते

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