AN: Writing about share splits and options consumed all my brain cells for the next weeks. Going forward I'll only be writing the total values without going too deep into the number of shares or contract prices and expiries etc. Enjoy. :) Leave an appreciation if you are loving the story.
---
The Only (Detailed) Mandatory Financial Report Card (Jan 1997)
Cisco's rise since Dec 97' was no longer a matter of fearful speculation; the ticker started its rise after the short pit over at 100 EMA line at $5.20.
Based on Neil's reminder. Both Jay and Phil invested an additional of $5k (909 shares) and $2.5k (454 shares) in the CISCO stock during the dip.
Just before new year's, CISCO had its first stock split of 3:2 in hopes to control the meteoric rise of its share prices (or maybe some shareholders wanted an exit?).
This gave retail investors further chance to invest. However, opposite to the company's expectation of price getting cheaper. It rose further. The dotcom bubble was starting to slowly inflate and money kept pouring into tech stocks endlessly.
After the new years the price had already rose to $10.50 compared to $9.00 before the split.
---
First Split: December 30, 1997 (3-for-2)
Grandpa: 2,909 shares ($30,544.5) -> 4,363 shares ($45,811.50)
Uncle: 1,000 shares ($10,500.00) -> 1,500 shares ($15,750.00)
Mom: 1,000 shares ($10,500.00) -> 1,500 shares ($15,750.00)
Dad: 1,454 shares ($15,267) -> 2,181 shares ($22,900.00)
Neil: CSCO20000119C10 x 7 [Intrinsic value: $4,250]
AN: ($10.5/share Price. I'm taking split-adjusted-prices as per 2025 standards. Without going into technicality just know that I'm using bogus share-market mojo to inflate their net-worth quickly. Although Y2K Phenomenon was great; and made many millionaires, it wasn't this easy either. I just want Dunphy to move out of suburbs in the recent future. That's all.)
---
Neil himself had invested all of his money ~$700 into CISCO OTM Call Options before the split.
The value of a single 100-share Option Contract was $100 for the $10Strike. The actual price of a single share hovering at $5.50 at the time.
This was a huge gamble, buying deep OTM Options that are almost double the current price; if not for the knowledge of future; such risk would backfire 99.999% of the time.
Even then, Neil was careful. All the Contracts had an Expiry of two years later—Jan 2000. Because even with future knowledge, he couldn't predict the market behavior in the short term.
Afterall, he didn't remember the month-by-month price of the company. Only that it will touch the ATH of $85 in March 2000 that it will not reach again even till 2024.
He could buy a total of 7 Contracts before the split with all my money into Call Option—without hedging.
With the price now already reaching $10.50 after split. His then 7 Options with 700 shares became 1050 shares. In intrinsic value alone his Options were worth a full $4,025.00 [ 1050 shares * $3.83 ($10.50 x 0.66)].
This was a 475% increase in just less than 2 months.
---
(A Wisdom: What Option means is that instead of paying $5.50 for a single share like retail investors, MC bought the "right" to buy the share at $10 (at 2x the market price) any time within the next two years; and for that reason, he only has to pay $700 now (Contract price) and the rest at the time of actual purchase. Yes, Options are weird like that. But this leverage is very risky and enough to bankrupt people. So don't try buying options unless you understand them well. Even then, hedge.)
---
After the first split Neil sold all of his 7 Options for $4,250.00 when the price stabilized for a while. He further bought OTMCallOption for $16 strike with all the newly gained capital when the price was still at $10.78, raising his number of total Options to 80 Contracts with an average buy price of $53.
Neil: CSCO20000221C16 - 80 Contracts ($4250.00)
---
Days after the Conan Show appearance:
Dunphy Living Room.
Claire fusses with snacks. Phil sits in his salesman's pose, overly eager.
The bell rings uncharacteristically in the Morning.
Claire goes to open the gate and finds a tall slender woman standing there. A black-leather folder in her arms; against the chest. Her gray shorts covering the thighs and nothing below; her golden blonde hair straighter than a spatula.
"Hi, I'm Cindy Osbrink. I made the call yesterday about Neil Dunphy's representation in the Hollywood."
"Oh. Please come inside."
Cindy Osbrink sets her leather folio on the coffee table. Neil sits opposite her, legs barely reaching the cushion's edge, but posture straight.
---
Cindy (inner):
The swimming competition tape weren't a lie.
My sources in the Broadway tell me that this little devil had the whole auditorium in his palm. Humor, acting, timing — sharper than kids of twelve. This icy deadpan look as if, he is the one interviewing me. The juice box. The win. He's a diamond in the rough. Even if he never sets foot in Hollywood again, the swimming alone could make him a household name. I never planned to sign athletes, but how could I turn down a windfall like this? Especially when he has no works under his belt.
Phil Dunphy—the father—looks gullible; easy to charm. Claire? Protective, cautious.
But it wasn't the parents who worried me. It is him. The boy. He looks like the stumbling block. He is the one already watching me like an equal. What four-year-old sits with a straight posture, with hands on his knees.
---
Cindy: "Let me explain how it works. For child actors in California, we follow the Coogan Law. That means fifteen percent of your earnings go into a trust account, locked until you're eighteen. Nobody can touch it — not even your parents."
Phil leans forward, nodding rapidly. "Oh, that's smart. Like a college fund but mandatory. I like it."
Neil's small fingers tap the table once. With a look of "I know" and "Impress me more".
Neil: "Fifteen percent in Coogan can't be avoided; law's the law. Ten percent to you as commission is also standard. I'm willing to concede; I can even go higher for riskier projects. The problem is the rest of the contract."
Cindy: "Of Course, we are here to discuss and come to agreement, aren't we?"
She showed her typical businessman smile. She turned to Phil and requested for a glass of lukewarm water. Her gaze stayed on him a second extra, while tucking the hair behind her earlobes.
Neil (inner): Oi. Stop flirting with my dad.
Claire (inner): I swear if she did that again, I'll have her ear full of hot magma.
Phil (interview): What can I say? The Dunphy charm—this killer smile has made many women open their secret treasures. I'm after all selling them a once-in-a-lifetime experience of owning a house.
---
Neil: I have gone through all the stipulation and even discussed it with my uncle—You might not know, him; but he recently practicing corporate law in NY. And we both had few demands. If you can agree; I can sign the contract right now.
Cindy: "Of course, Neil. I'm all ears. I would love to hear it. I want nothing more than to get you prepped up for your grand debut in the Hollywood."
Neil: Okay. So, these are my condition: You reserve the right to bundle auditions, to prioritize other clients. That's unacceptable. I require full transparency."
Cindy (inner monologue): He said 'require.' Not request. Require. From a four-year-old. Does he even know half the agents in this town would kill for that kind of exclusivity?
Cindy (aloud, masking irritation): "You'd be joining a roster of some very special talent, Neil. Like I mentioned before in the call to your mother and father. For example — we represent Jake Lloyd. He's going to play young Anakin Skywalker in the new Star Wars prequel. Although, the news is not out yet; but insiders already know. You have to understand what a huge franchise represents. Massive exposure. Connections. These are all things that can't be quantified. We can even get you a side character role with few lines in the same movie as Jake Lloyd. Although, our agency might not be as famous in LA; I assure you that we are one of the best Young Talent Agency in the country. Period."
Neil's eyes flicker. He knows the name. It was because of Jake Lloyd and the other child stars that her agency represented that he even agreed to have this meeting.
Neil (inner monologue) 'Although, I wasn't part of Hollywood. I know all about the agencies and distribution networks. I know how even the academy can be manipulated; of course, there is still time before Harvey's debacle that will destroy academy's reputation. Jake Lloyd. Episode I, 1999. The child who carried the most famous franchise in history — and paid for it with his childhood. And Osbrink was his agency.
Cindy: "We also have Dakota Fanning and Kristen Stewart in our pipeline. They're young, only few commercials in their name and still going through acting school right now. But when they are ready — they'll headline. That's the promise our agency represent. It is not easy getting these conditions; especially for a newcomer child actor."
Neil (inner monologue): Dakota Fanning. By 2001 she'll be in I Am Sam, Oscar buzz at seven years old. Kristen Stewart — Panic Room with Jodie Foster, then Twilight years later. Both powerhouses. She's not bluffing. This agency has great eyes for prodigies. (AN: I'll die on the hill that Kristen Steward is a great actress).
Neil nods slowly.
Neil (aloud): "You have talent, no doubt. But I won't be lumped in as another kid in a folder. I want honesty. I want every offer, every audition. If I pass, I pass — but it is I who decide. I have my own talent of recognizing a Good script."
Cindy (inner monologue) God help me. He talks like a man forty years older. Most parents beg me for scraps; this one is negotiating clauses. If he weren't five, I'd swear he'd done this before.
Claire (awkwardly) "Honey, maybe we don't have to—"
Neil holds up a hand, still polite. "Mom, please. This is about my future in the industry. I'll not be contractually bound to work in mediocre works and M&M's commercial. Not that I look down upon them, but I have my own path."
Claire blinks, then folds her arms, strangely reassured; but still grumpy. 'What child stops their mother for negotiating from their behalf. Although, I have to believe what Neil is saying. He was the one who went through all the details in the contract line-by-line overnight with Michell and his friends on the call'. I'm just worried that he will come out as arrogant and might antagonize powerful people.
Cindy: "Then here's what I'll offer: ten percent commission, Coogan account, and guaranteed priority on feature film auditions. But exclusivity stays. We can't function otherwise."
Neil shakes his head.
She doesn't get it. I'm not after feature films or mega-budget projects.
In this life I want to pursue my heart, not wealth or fame. If the future is not too drastically different from my past life. I have hundreds of ways to get money. Exclusivity to their Agency; I will never agree.
I want to voice act in Anime. Do a Bollywood movie. Heck, I'll do a musical on TV if that's where my pursuit led me. I'll not be chained and put in a box in this life. That's not a destiny I want to write for myself.
I'll rather join a no-name agent and start from the bottom rungs of the Hollywood Audition then sell my soul and join the projects that don't align with my taste.
Neil: "We'll get back to you by Monday."
Cindy (inner monologue) Monday? That's after the Conan Saturday broadcast. He knows. Damn it, he knows. He's waiting for leverage. If I don't have him signed before Friday, the phones will melt with offers. And I'll have lost the diamond I came for.
Cindy (aloud, too smooth) "Monday is… late. Why don't we reconvene Friday? Get the papers signed before the weekend rush."
Neil's lips twitch into the faintest smile.
Neil (inner) So she does know about the Show. She's seen the booking sheet. She's already factoring in the national audience reaction. That's good. It means she's watching. But it also means she's the right one — if I set the terms.
Neil (aloud, calm) "Monday. After the show. Then we'll talk again."
Cindy (inner monologue) He's going to be famous either way—either as an actor or a sports prodigy. I need him in this agency. But I can't force him, can I? Any wrong step, and I can end up in jail. The child actors are protected by so many laws; that's why you don't see many agencies handling child actors. It is a tight rope. But I must admit, he is someone who will make it in the Industry; if he is not consumed by the shadow below the lights.
Claire clears her throat. "So… snacks?" Phil beams.
Cindy forces a smile, gathers her folio, and rises.
Neil watches her leave, the gears already turning.
Neil (inner) She's the one. Real Deal! But not like this. After Conan, she'll come back on my terms. Dedication. Transparency. Exclusivity — but for her, not me. That's the deal.
---
AN: btw, I like writing explanations for stuff that happens in story; but won't spend too much time for that in this novel. I'll write some reasons; just to solve the itch (yours and mine), even if they don't make total sense. Like movie release dates being different; or a Hollywood star not being in LA but appearing in the novel. Just suspend your belief for those little things.
There's no way I'll spend time fixing every loophole in the story; unless I was getting paid by WGA standards; but that isn't happening. :D It won't be absurdly unreal, but to the actual geeks, there will be differences obviously. It is hard for me to know all the cultural nuances of the that era; especially when I was just born back then. So go easy on me, will ya!