JDN, on the spin-off, some observations--perhaps you should be considering that--
1- the spinoff of shares in Global Center will raise capital for the business that GBLX is attempting to build; as capital is applied to develop GBLX's vision at an accelerated pace, the faster GBLX's business model will be put into place to test the assumptions made therein--until that time, imho, earnings reports are mere teasers as to where this company is trying to be in five years;
2- market valuations right now are at near blow-off levels in many stocks: for management to capitalize on these valuations by issuing Global Center stock to the public for cash as the valuations the institutions seem willing to apply to such a concept will add very, very cheap equity dollars at the disposal of management;
3- though you may not have cold, hard cash in your pocket from a quick flip of stock "given" you in the IPO, it will nevertheless add value to your shares of GBLX as the Street begins to revise its view of GBLX to a more "sum of the parts" analysis--last I looked, internet server/servicing businesses were not being sold cheaply;
4- let Hindery be Hindery--this is what he came to GBLX for; Winnick and he obviously believe that if GBLX unchains Global Center, it may have more earnings leverage than if it were captive; this also lets web-hosting and other server businesses feel a bit less conflicted about lighting, leasing or trading GBLX fiber; and
5- as Robert pointed out, I think aptly, in a second phase of the spin-off, you may receive your coveted shares of Global Center as a tax-free dividend, reflecting the value of that company proportional to the spun-off shares--GBLX's valuation would be proportionately reduced (until the market takes it back up to its highs).
Just my opinion on your post.
Steve |
