Global Crossing - GX (formerly GBLX) Message Board

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Technology Stocks : Global Crossing - GX (formerly GBLX)

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To: gruetz who wrote (12707)	7/19/2001 9:06:41 PM
From: CF Rebel	Read Replies (2) of 15615

gruetz, "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..." This is how shorting can cause unnecessary complications in the evolution of a company. Instead of a responsible company being allowed to pursue a rational business plan, it has to contend with the artificially contrived conditions that shorting gives rise to. This is not to say that shorting is wrong in every case, but it does do real damage to even the best of companies. Companies ought to have to contend with real obstacles, not artificial ones. Apparently, the shorting in GX shares is due to the market's very high expectation that GX will have to give lowered guidance for the rest of the year. If the shorts are wrong on this, their six days to cover could result in quite a rally, perhaps into the 'teens. If they're right we'll at least test the recent lows perhaps seeing the 5-6 range. Here's hoping the shorts are dead wrong. CF Rebel

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