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Technology Stocks : GX Investors Thread

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To: DukeCrow who wrote (107)	8/28/2001 12:28:57 AM
From: Theophile	Read Replies (2) of 586

The issue of short shares has been previously discussed, yet in view of the increasing short interest in GX I have a perspective which may not have been in focus. Considering the shorting of a stock and its usual role in "maintaining efficiency" in a market, what would happen if aligned interests with sufficient capital and strategic position in a market were to short a stock below a critical price point where large holders (such as funds) needed to exit, thus driving the price of the common as close to zero as possible. At that point a play for the company based upon an artificially induced low price could be made, either as an unsolicited offer or by the shorted company being required to trade equity at an unbelievably low cost to the acquirer. Does this current telecom situation fit this description? Could those aligned interests then even go so far as to acquire an $8B dollar investment for $4B, minus the risk of startup? Clever? Possible? Factual? Almost Factual? Martin

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