Catuity Soars on CEO John Racine Stock Options

Catuity Inc. (Nasdaq: CTTY), a loyalty and gift card processor, reported today that President and CEO John Racine has executed a 10b5-1 plan with a stock brokerage firm providing for the exercise of 45,000 options and the market sale of the shares then acquired, only when the company's share price reaches the price range from $15 to $26.25. Apparently, Racine seems to believe that this is a good faith act to show that he is committed to creating long term shareholder value. He went on to say that he "would like to stress that I will exercise a limited number of my options, as outlined in the plan, only when these minimum price thresholds have been achieved." Those price targets are significantly above recent trading prices and that has given the impression to many investors that Catuity will eventually be worth enough for Racine to cash in on his options, and likewise for shareholders to profit from the rise in stock price. Though it remains to be seen whether the company will be able to grow its business, Catuity shares are up nearly 38.71% to $8.35, inching higher to the option exercise prices.