Ann: Appendix 3Y - Dr John Cullity, page-115

John Cullity owns $26m worth of shares….he has promised not to sell any of these shares for the next twelve months.

Assuming what he says is true, don't you think his reassurance that he will not be selling any of his $26m shares in the next twelve months more than compensates for his selling most of his $1m sale of shares to two long-term, “sticky-hands” major shareholders?

Try to see it as two alternative universes:

Universe 1 is the above scenario: $1m shares sold, mostly to “good homes” plus a guarantee of absolutely no more shares sold for next 12 months

versus

Universe 2, where John Cullity quietly coughs up the money to exercise his millions of options, a standard announcement is quietly released announcing this option conversion, and nothing else is said.

Which universe offers bigger peace of mind?

…

How much is it worth knowing that someone holding $26m worth of shares promises not to sell a single share in the next twelve months, regardless of what the world brings us?


I would take Universe 1…but only, of course, if the promise is a genuine promise.