Global Crossing - GX (formerly GBLX) Message Board

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Technology Stocks : Global Crossing - GX (formerly GBLX)

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To: CF Rebel who wrote (12706)	7/19/2001 8:42:23 PM
From: gruetz	Read Replies (2) of 15615

GX short interest has increased by 26 mln shares from 5/15 to 7/15 (60 mln on 5/15 to 72 mln on 6/15 to 86 mln on 7/15). Only a little more than a third of the 26 mln increase can be attributed to Winnick's collar. Must be that hedge funds are shorting due to their having jumped on the theme that "all telecoms with large debt must fail." With seemingly no telecom able or inclined to be the acquirer of a "debt laden emerging telecom" no matter how good the emerging telecom's execution, the hedge funds can short without the risk of a Monday morning surprise acquisition announcement. Unfortunately, the low stock price consequence of the shorting does have more than a temporary stock price effect on GX. For example, it eliminates equity related funding opportunities for GX, due to excessive potential dilution, which could be advantageously used by GX to buy distressed metro bandwidth assets. Thoughts?

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