Kraft?

**grapes** Wed Jan 31, 2007 7:11 pm

Kraft?
Kraft will be totally spinned off from Philip Morris this March. Just annouced today, though it is possible be delayed.

Is this one interesting?

**grapes** Wed Apr 04, 2007 5:38 pm

Re: Kraft?
Things are getting interesting. There are significant insider buying today which haven't shown in Yahoo finance. CFO $700K, one EVP $1M, one EVP $450K, controller $300K, and a director Camiller, $13M.

grapes wrote: Kraft will be totally spinned off from Philip Morris this March. Just annouced today, though it is possible be delayed.

Is this one interesting?

**grapes** Fri Apr 13, 2007 9:16 pm

Re: Kraft?
Blast,

Bugs in your weekly insider buying report? I don't see KFT in this week and last week. However, as I already found in the sec.gov database, there is significant insider buying over there on March 30.

grapes wrote: Things are getting interesting. There are significant insider buying today which haven't shown in Yahoo finance. CFO $700K, one EVP $1M, one EVP $450K, controller $300K, and a director Camiller, $13M.

grapes wrote: Kraft will be totally spinned off from Philip Morris this March. Just annouced today, though it is possible be delayed.

Is this one interesting?

**blast_investor** Tue Apr 17, 2007 10:49 am

Re: Kraft?
grapes,

Yahoo finance does not treat those recent Kraft insider transaction as insider buying:
http://finance.yahoo.com/q/it?s=KFT

If you look carefully at SEC filling, such as this:
http://www.sec.gov/Archives/edgar/data/1103982/000120919107022145/xslF345X02/doc4.xml

This is Phantom stock transaction, not a real insider buying. In this case, this works like Bonus based on stock price, but insiders never have to pay any of their own dollar to buy stocks. There is no real stock involved, it is "phantom" or fake in plain English.

grapes wrote: Blast,

Bugs in your weekly insider buying report? I don't see KFT in this week and last week. However, as I already found in the sec.gov database, there is significant insider buying over there on March 30.

**grapes** Tue Apr 17, 2007 1:07 pm

Re: Kraft?
Thanks Blast.

So for this one
http://www.sec.gov/Archives/edgar/data/1025044/000120919107022086/xslF345X02/doc4.xml

The small print letter is

Represents shares or share equivalents acquired by reporting person pursuant to the March 30, 2007 distribution of Issuer's shares previously owned by Altria Group, Inc.

It means it is shares from the split of the original Altria company. Put it another way, it is still shares free?

**blast_investor** Tue Apr 17, 2007 4:35 pm

Re: Kraft?
The link form said the code is "A".

Code A in form 4 means "award" or "grant". This is not real insider buying.

At most, it is option excercise and the form does say "stock option" word in it.

I tend to view all kinds of option transaction as "neutral indicators", not as significant as pure simple insider buying.

grapes wrote: Thanks Blast.

So for this one
http://www.sec.gov/Archives/edgar/data/1025044/000120919107022086/xslF345X02/doc4.xml

The small print letter is

Represents shares or share equivalents acquired by reporting person pursuant to the March 30, 2007 distribution of Issuer's shares previously owned by Altria Group, Inc.

It means it is shares from the split of the original Altria company. Put it another way, it is still shares free?

**grapes** Tue Apr 17, 2007 7:07 pm

Re: Kraft?
Still a little bit confused. Take http://www.sec.gov/Archives/edgar/data/1025044/000120919107022086/xslF345X02/doc4.xml

as an example.

In table II, it looks like those lines are options getting exercised at $7-$23. I can see that is neutural signal as the exercise price is way lower than current stock price. The out of pocket money to exercise options is not likely to lose. However, if the exercise prices is very close to current stock price or even higher, do you think it can be viewed as moderately bullish?

blast_investor wrote: The link form said the code is "A".

Code A in form 4 means "award" or "grant". This is not real insider buying.

At most, it is option excercise and the form does say "stock option" word in it.

I tend to view all kinds of option transaction as "neutral indicators", not as significant as pure simple insider buying.

grapes wrote: Thanks Blast.

So for this one
http://www.sec.gov/Archives/edgar/data/1025044/000120919107022086/xslF345X02/doc4.xml

The small print letter is

Represents shares or share equivalents acquired by reporting person pursuant to the March 30, 2007 distribution of Issuer's shares previously owned by Altria Group, Inc.

It means it is shares from the split of the original Altria company. Put it another way, it is still shares free?

**blast_investor** Tue Apr 17, 2007 7:26 pm

Re: Kraft?
Regardless of option exercise price or not, I would consider that code "A" transaction as "neutral" because exercise is mainly a tax maneuver, and it is possible to have other styles: phantom stocks or else. One form already said "phantom stock".

In phantom stock situation, the stock price hypothetically purchased by insiders are usually high, close to current market price. But insiders pay zero dollar to buy those phantom stocks. When the stock rise significantly, insiders sell phantom stocks to company, and company will pay the stock profit to insiders based on the purchase price. All these transaction are phantom or fake because no real stocks are involved, only hypothetical stock. Therefore, it is like an option.

Code "A" said it all, it is grant or award. For phantom stocks, the stock price may be close market price or even above, but insiders do not need put own dollar to buy. They get them for free. Therefore, it is still "Grant or award" as designated in code.

grapes wrote: Still a little bit confused. Take http://www.sec.gov/Archives/edgar/data/1025044/000120919107022086/xslF345X02/doc4.xml

as an example.

In table II, it looks like those lines are options getting exercised at $7-$23. I can see that is neutural signal as the exercise price is way lower than current stock price. The out of pocket money to exercise options is not likely to lose. However, if the exercise prices is very close to current stock price or even higher, do you think it can be viewed as moderately bullish?

**grapes** Tue Apr 17, 2007 8:52 pm

Re: Kraft?
Then does it mean it only "P" purchase is bullish sign? Also, do you know where can I find a list of what code means which as a simple google search did not yield me anything useful.

**blast_investor** Tue Apr 17, 2007 9:42 pm

Re: Kraft?
Yes, I would say so, only "P" counts as insider buying.

You can search Google on "SEC form 4 code" to get a full list of code.

Yahoo finance already interpreted code correctly in their insider buying page.

grapes wrote: Then does it mean it only "P" purchase is bullish sign? Also, do you know where can I find a list of what code means which as a simple google search did not yield me anything useful.