InfoSpace (INSP): Where GNET went! Message Board

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Technology Stocks : InfoSpace (INSP): Where GNET went!

INSP 84.03

-1.0%

9:51 AM EST

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To: HO-MEE who wrote (20364)	7/27/2000 1:53:35 PM
From: Hawkmoon	Read Replies (4) of 28311

What do you mean about "taking on those calls"?????????????? News links on the GNET newswire reported that there was unusual call option activity in GNET. That means that people were paying pretty high premiums on GNET calls in anticipation that the stock would either uptrend due either to blow-out earnings, or to acquisition rumours. So now all of this money has been spent on options in a stock that post-acquisition is still at the same price it was pre-acquisition. And now it appears due to INSP's stock being knocked back down to their previous low made during the April crash that all of the consolidation and rebuilding that had been taking place over the past 4 months for them has been for nothing. That means that the upside potential on GNET options is limited by INSP's ability to sell this deal to Wall Street. And I have to completely disagree about timing an acquisition. It would have behooved INSP to hold off on finalizing the acquisition and let their stock continue to find strength based upon the earnings report they delivered yesterday (I'm somewhat confident that GNET was not "in play", which would have pressured INSP to announce yesterday to beat a competitor's bid). In otherwords, there was no reason for either side to hurry. INSP could have held off until they were sure the street would support their stock based upon the strength of earnings, and GNET would have been able to increase the probability of their receiving a premium over yesterday's price. IMO, these two CEOs made a tactical error in not timing this acquisition to such a time where they could have mitigated much of the damage that INSP's stock has suffered. I'll be damned if I'm willing to sell off our shares in GNET for the pre-acquisition price that GNET achieved on its own merits just because INSP couldn't wait until a more opportune moment when their stock, the currency of this transaction, was assured of more support from the street. When a company is using stock as currency for an acquisition, they'd BETTER MAKE DAMN SURE that the market will smile upon their plans. Otherwise the street will devalue that "currency" and make the acquisition more costly than necessary (by GNET shareholders holding out for more compensation for the past several years of loyally holding their stock). Hope you understand better where I'm coming from. And I also hope you will join me in holding out for more "money"(stock) from INSP. They are buying GNET on the cheap, acquiring a company that essentially has the same revenues and profit margins that they possess. They should pay commensurately for that priviledge to double their income stream. Regards, Ron

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