“Incumbent Says U.S. ‘Must Adjust’ Tactics”
By Tim Craig and Michael D. Shear
Washington Post Staff Writers
Sunday, October 22, 2006; Page C06
“Virginia Sen. George Allen (R) has been changing his tone on the war in Iraq in recent days as he tries to fend off a challenge from Democrat James Webb, who opposed the invasion even before it started.”
Why does Allen flip flop on Iraq but not on H1B and Skil Bill? Because Allen has 1 million dollars in options in Commonwealth Biotechnologies, and CB has to have H1B visa workers to squeeze out its profits. Allen’s options become worthless if the company can’t squeeze its workers.
Allen didn’t report his options and at the same time pushed Skil Bill and H1B legislation to profit himself, potentially for a payoff of many millions if his options go deep into the money. He won’t do anything to stop that. He wants to be rich, and for us to be poor and that is the choice he has made on H1B and Skil Bill.
Allen will flip flop on Iraq, on our security, on anything except his options and the H1B thralls he counts on to make him rich. Allen thinks he can say the word macaca, wrap himself in the Confederate Flag, and vote for Skil Bill and H1B to impoverish us and enrich himself and we are too dumb to notice.
Allen has contempt for his base. He thinks they can’t see beyond the Confederate Flag to what he really does in the fine print. He voted for the Hutchison Amendment to S .2611 to have unlimited guest worker along with his unlimited H1B Skil Bill, for those educated at US graduate schools, to enrich himself by his own, at the time, undisclosed options.
These are out of the money options, i.e. the stock price is less than the strike. What that means is that if they go deep in the money, they pay off with huge leverage of 10 to 50 to 1. So Allen could get 150 thousand dollars if this Commonwealth Biotechnologies pan out to be worth 17.50 from a current stock price of 2 to 3 dollars.
Their business plan, which he knows from being on their board between being Governor and Senator, is completely dependent on getting H1B workers and squeezing them. Allen knows from the business plan he has to keep the supply of H1B’s coming.
So he doesn’t care if the H1B’s commit a 9-11 terrorist incident on the side, or steal our secrets, or spy for China. Thats incidental to their main job of squeezing our wages and taking away our bargaining power. He needs that to get money owed him in his mind. He will chisel us to keep his chance at the money he feels he lost if the options go deep into the money. So he will do what he can to keep the H1B gates wide open without limit.
==Info on Allen options
Allen has 15,000 options with a strike of 7.50 and the stock price is now under 3 dollars. Allen’s options were extended to 2009 because he became a Senator and the company expected him to help their business plan, i.e. get them more H1B workers.
Options on 15,000 shares when the share price was 10 dollars have to be less than the value of the shares, which would have been 150,000 dollars. Allen has an upside conceivably on these options of 150,000 dollars or more if the stock price goes to 17.50 or more from the 2 to 3 dollars currently.
Allen may also feel that he lost money on these options and has to make it up anyway he can, e.g. by pushing uncapped H1B though his Skil Bill that he pushed in May 2006. If he wants to be president in 2008, he doesn’t have a way to earn money in the private sector until 2012 or 2016, and so he may want money from the options.
Allen became a more serious contender for the Republican nomination for President in 2005 and early 2006, and this is when he became a cosponsor of the Skil Bill. So he may have seen this as a way to push the value of his options.
Since Allen says companies like CBI can’t succeed if they depend on dumb and lazy Americans, we can infer that he desperately wanted a mass of H1B’s from his spring 2006 Skil Bill to save the value of his options and get him the value of these options lost when the stock price went from a high of 9 or 10 dollars to the current 2 to 3 dollars.
Allen blames the stupid and lazy Americans for losing this money and making the options “worthless” and so he will punish them and also profit himself by bringing in millions of H1B’s over the next few years with his Skil Bill. This will get him back the money that the American programmers and scientists “stole” from him by being stupid and lazy.
This is the rhetoric that Allen constantly pumps out and is consistent with his use of words like macaca and his incidents in his early youth. He regards other people as just objects, and if they “lose” him money, its because they are stupid, lazy, and shiftless. So he needs to get other people to replace them.
A person with these resentments is unsafe as a Senator or President. Allen likely blamed Sidarth for his options not being worth as much as well. This is another reason he likely called him macaca. Why aren’t my options back to what they were he was saying. He holds Sidarth responsible, because in Allen’s mind, Indians like Sidarth are smart and hard working, unlike Americans who are dumb and lazy and spend their time talking back to their natural superiors, i.e. Senators.
An earlier version of this article and the post at WaPo contained errors because of a misunderstanding of press reports of Allen’s option holdings. The clarification reduces substantially Allen’s potential profits from his options.
==Correction Comment posted at WaPo
Allen stands to gain a smaller sum than conjectured earlier from his current option holdings. Allen only has options on 15,000 shares of CBI today. The 1.1 million references other options he held as well in the past. So Allen’s potential gain from his current option holdings is more like 150,000 dollars if the share price went from 2 dollars
to say 17.50 since the strike price is 7.50. Allen was given these options in the past and may get more in the future from high tech companies that are benefiting from his Skil Bill and H1B. So the principle of Allen’s past and future option gains coming from his Skil Bill and H1B as a return favor is valid. More discussion on this at Old Atlantic Lighthouse wordpress.com.
This post represents opinion, hypotheses and speculation. All other disclaimers apply.