The company is Fourth Communications Network, out of San Jose California. If you look at page 50 of the 10k, you will see the preferred stock and warrants Newcom purchased. Certain people on this and the Yahoo thread sneered at this, accusing the Company of "buying" Webpal orders. It was in fact an investment in a hot little private company - and, yes,if they go public in a few weeks, Newcom will double or triple its $5 million investment. The current state of the world markets may prolong this event, however.
The shorts have not been right, they have been lucky. Dreyfus selling, the sell-off in the market, and a cash squeeze at the Company have all conspired to send the stock price down. That's old news. Now, with various financing packages, Dreyfus a minor holder, and a series of mergers and business deals in the works, the shorts have shown themselves to be dumb as well. Why? They have not covered. One of the big players on the short side are the Kaufman funds. Remind me not to invest in any of their funds in the near future. They will be taking some heavy losses. |
