Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 60.16

-4.2%

Jan 16 9:30 AM EST

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To: Maurice Winn who wrote (13623)	6/17/2000 9:13:00 AM
From: Investartist	Read Replies (1) of 29987

LORAL BUYOUT I am really beginning to think that Loral may be a target for a buyout. The psychological weakness at this time makes it a prime candidate for price manipulation. Remember, it is the second largest satellite manufacturer in the country with many valuable assets including 40% of Globalstar. Bernard Schwartz flatly denied that Globalstar could be a buyout candidate but could not say that about Loral when I attended the shareholder's meeting. Consider that Craig McCaw badly wants a Global telephone system. Can't buy Globalstar but you can buy Loral. Read the following posts from the Loral thread on Yahoo in the last week: gang by: ts912 6/6/00 2:48 pm Msg: 36281 of 37552 Broker I deal with at Prudential called the floor and was told it was Pershing and it was a short sale. It has been Pershing for the last several weeks with large blocks for sale. We have checked just about every day. They wait for a down tick and then will lower their short sale block. That's what happened just a few minutes ago. When the stock traded at 7 11/16 they lowered their stock for sale to 7 3/4 -- 130 k for sale. If it goes to 5/8, look for the block to come down to 11/16. They have been doing this some time. investartist by: ts912 6/6/00 4:59 pm Msg: 36302 of 37555 The strategy is quite simple. As a short you are trying to keep the price going down. What they do is show substantial size on the ask side. In this case it has been 50k to 200k shares for sale. When a stock is out of favor like this, the size on the bid is not usually very large. Seeing a large seller prompts a real seller to take out the bid. When the stock trades lower, the short drops his ask price 1/16 or 1/8 to just above the last trade which was lower. Done consistently in a weak stock, it will keep strong pressure on the sell side and contribute to the decline. Pershing has been shorting in this manner for at least several weeks. There probably has been some covering also, but I would expect that short interest is still increasing. I agree with you that it seems awful risky to be shorting this stock at this level, but it is happening. I expect that they believe the numbers for G* will be bad, and this will take LOR lower and they can cover then. We'll wait and see. A lot of support for LOR in this price area. Hope it holds. -------------------------------------------------------------------------------- Posted as a reply to: Msg 36297 by investartist Go to Msg #: < Previous Notice how large blocks of stock have been bought on a regular basis as the stock went lower. Also LMT has a big block of stock that could be negotiated by a buyer at say $20 per share. A large broker like Prudential could dump a lot of shares at the open like happened this Friday and the price drops. Then they buy them back and more shares at a lower price having lost virtually nothing and gained more shares. A buyout of Loral would gain not only many valuable assets but 40% of Globalstar at the same time. Comments? Investartist

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