14 July 2000 = BASTILLE DAY GLOBALSTAR CELEBRATION, first one of 21st century.
Note that rumour has it that the phone price will be reduced and a more realistic minute rate introduced on that day.
This could be fun. It really, really is a short-squeeze wolf!! Shorts are going to be eaten alive. They have been warned, THREE times now. Three warnings is traditional.
As shorts can now see, the money has been obtained so there will be NO cash shortfall or squeeze or other crunch. As shorts can also see, gateways continue to come on line and all sorts of support is building. Data rates are going up much sooner than expected. Technology developments are proceeding apace. Roaming agreements continue to improve.
Now, the coup de grace for the poor shorts, handsets and minute prices are to be cut to stimulate demand.
Combine that with the end of the Nasdaq woes. This will result from recycling of petrodollars - elderly folks will recall the woes from 20 years ago, which were absurd at the time, as the huge oil price increases of the 1970s made economists worry about recycling of those dollars. At the time it was obvious that recycling would be no problem = the people holding the $$ either put them in a bank or go shopping. Simple eh? Same now. The OPEC Arabs have hundreds of billions in extra profit over the past year due to the tripling in oil prices. They will buy Q! MSFT, G! and a lot more besides. As the impecunious Americans repay their credit cards and margins while suffering higher interest rates, the Arabs will buy the stockmarket.
So Alan Green$pan will be faced with no inflation, stable employment, reducing interest rates but the stock markets in general and G! and Q! in particular will take off as Arabs replace Americans as the shareholders. Alan won't have to increase interest rates and though it might seem contrary to what he expects, he'll just have to accept a much higher stock market, which won't be causing a wealth effect, inflation, excessively low unemployment and wage demands etc.
So, all aboard.
The Big Dipper has been a LOT of fun, but now it's time for the big upward trend to continue. So many people have been flung off, severely depleted or merely decimated that there is no more selling pressure to speak of but heaps of buying pressure as all those petrodollars and the smart alecks who sold Q! at $170 or even $120 and G! at $53 or even $40, come back into the marketplace and pick up the bargains which are lying around on the trading floor.
Watch the institutional holdings of Globalstar shortly! You will be pleasantly surprised = I'm sure there will be some interesting additions.
Here wolfy, wolfy, wolfy! Lots of yummy shorts for dinner.
Mqurice
Dow 16,000 Feb 2002
G! and Q! $1000 each [I think it was Feb 2004 - have to recheck, maybe it was 2003]. |
