OT.
Whatever it is worth, I have been following LOCH since .03 and now someone brings up GNET. Please comment on this persons post about the comparison to GNET and hedge funds.
Dr. UNIX
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As for hedge funds (which any money manager with guts and cash can start), there was a gentleman over on
RagingBS who claimed to be a hedge fund guy who claimed to be shorting LOCH at $4 1/2.
I have no reason to doubt him. Says that the shares are hard to obtain, but they are out there for the institutional
players with the capital backing.
LOCH is no longer a "penny stock". It has traded with a higher market cap than the company that owns Silicon
Investor, Go2Net (GNET). And GNET has $300 million in cash, the backing of Paul Allen, but little institutional
involvement in the shares.
So why the comparison? Because the rumour has it that one or more hedge funds have been "controlling" the
market for GNET over the past year, taking advantage of its huge run-up in 1999, as well as the lack of institutional
holders of the stock.
So the result is that whenever these players want to move the stock, they throw some money at it, excercising
power that the small guys can't. LOCH trades with a multi-billion dollar market cap. Institutionals have access to
that kind of cash and they like nothing more than to take money from a bunch of small fry hypsters.
So the result MAY BE that LOCH goes to double digits.. But for those who overstay their welcome, it will
inevitably come back down to low single digits, with institutions shorting it all the way down and picking up a nifty
profit for their funds.
The question is whether regulators grow concerned enough with the potential for so many investors being hurt by
such a high market cap in a BB stock that they put an end to the party before it really gets started. For the shorts,
that will be Nirvana since they will never have to cover, or will do it for pennies per share 12-24 months from now.
It will be interesting to watch. |
