The telescam pump (I credit the choice of words to in2trading from yahoo) is the conjectured reality (according to the shorts) of the widely rumored (by the longs) hype of an investment by a telecom company.
Several Yahoo posters, who have in the past correctly posted advance Cliff-notes versions of LOAX press releases, have been crowing about a supposed investment by a telecommunications company (NTL most frequently named) for (depending on which rumor you believe) between $25 and $125 million. This was also reported in Business week by an analyst no one has ever heard of and who I (and subsequently Barrons, in greater depth) was able to tie back to Dirks.
Given that the Cliff-notes advance releases tend to spin actual news in a positive direction (by orders of magnitude), it has been my assumption (and that of several others I know who trade LOAX on the short side) that LOAX will find a way to structure a deal that can be positioned as a cash investment, but which in fact will be a BAD deal for shareholders, about which (IMO) LOAX management cares not a whit. For example, NTL sells LOAX $200 million worth of equipment for $250 million, and invests $50 million in LOAX. All structured over time, of course, with the NTL investment only coming as the overpriced equipment is paid for. But that part won't me mentioned in the press release, I suspect <g>.
As for released shares, we know nothing, I was simply reporting that an avowed LOAX supporter had claimed on Yahoo that he had in fact determined that some shares had been released. I figure if a long actually admits that, it's probably true, since the longs had been so vehemently denying the possibility for months (one of them actually told me to "screw the SEC filings, they're not true" or some such nonsense, after I kept posting the language that showed Dirks could waive the lockup after 6 months LOL.)
There is nothing in the SEC documents that would prevent Dirks from releasing them, and they have an incentive to do so while they still control the lockup (i.e. from now to six months from now), so they can force the trades to occur only through themselves. It's my opinion that Dirks will release anyone who pays them -- but that the preferred insiders will be given direct access to the exit door (on the next pump), while the other insiders will have to wait until the crowds have thinned out.
But hey, what do I know?
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