But, Skane, that's precisely why this is a good time to get it! Look at its competitors, EXDS, MFNX, DIGX, etc. The whole sector collapsed and many of these companies won't survive. Genuity will, however. Why? Because it has the two billion dollar line of credit and the full force of Verizon behind it. GENU is key to the long range plans of VZ.
Look at what happened. An outgrowth of Internet inventor BBN, GENU was a legally forced spinoff when GTE Corp Internetworking and Bell Atlantic merged, becoming Verizon. For the merger to happen, something had to go, thus GENU IPO'd. Unfortunately there was no control over when to do the IPO and consequently it first began trading publicly under the absolute worst conditions possible, with the tech market in a complete freefall. As a result, it's done nothing but trade downward since it first began trading. It's trading low of $1.20 is an anomoly given it was extremely brief price, eventually bouncing back up to the mid-threes. Well, now it's come back down again large due to the complete collapse of the sector. That institutions sold? Hey, where didn't they sell? GENU was no different.
I think if you examine how GENU is growing, in Europe, in Asia and in Latin America, you'll see that down the road this company will be huge. Eventually, once VZ meets certain conditions, it'll assume ownership of 80 percent of the company and this is, in large part, what accounts for so many shares. Once the consolidation is over and EXDS and the MFNX types have played out, you'll find Genuity still standing ready to take the lead when its sector recovers. Best to think how the oil drillers were at their lows and where they are today now that its sector has recovered. Well, same is true for Internet-related stocks like Genuity.
So, yeah, I agree with you. There's lots that look bad. But those GENU insiders know there's good down the road. And I think this is why they've been buying.
Pretty much, though, I think all we gotta do is throw a dart and find a fine company to buy and hold and wait to get rich on. I just happen to think Genuity is one of 'em!
PS: Regarding institutions, we might wonder why Green & Company is accumulating large portions of GENU--check it out! |
