Dog,

As you know, CGNH is the only penny stock I have purchased so I am willing to defer to your greater experience in this area. However, from your posts, I think I have an even greater depth of experience and knowledge in the arena of early stage health care development companies. Consequently, I trust my opinion regards Linda Sterling's actions with the stock options and exchangeable shares she holds in CGNH more than I do yours.

IMO she clearly does work for CGNH in exchange for equity rather than money, a strategy Dr G appears to be following with all of his early essential personnel. IMO a wise move as he conserves the limited cash CGNH holds while moving development programs forward.

As for Linda's disposition of approximately 10% of her holdings, in my experience this is reflective of routine behavior by healthcare executives. Now if she had unloaded a third or more of her stake then I would be worried.

In the future IMO we are going to be informed that CGNH has awarded new stock options to their Senior Management, given our past history you may well see this as a negative event, while I will view it as standard operating procedure.

Ante