Sergio,
I need some advice,was going to take a small profit on this stock GX been reading the boards and am very confused.
Read this.
10 reasons GX will soar Monday and beyond:
1) The obvious: the convenants were waived until February 13th, meaning the downward pressure on the GX price because of uncertainties about the convenants will be lifted;
2) It's the final trading day of the year. Tax sellers holding GX had until Monday to decide whether or not to sell GX for tax purposes. Many of them now will not sell, resulting in a higher stock price;
3) Tax sellers have a pile of cash sitting after they sell for tax losses. They're going to want to start replacing their losses and buying companies with extraordinary growth potential for 2002;
4) Monday is a skip day. The combination of an open trading day, surrounded by closed trading days and the fact that it's the final trading day of the year is very rare. Shorts will not want to wait through a closed session while holding bag on a live bomb. Massive short covering;
5) The DOD DREN was earmarked for a decision before the end of the year. Well, that's Monday. It could happen- and if it does, the DOD contract not only adds to the GX cash position, but reaffirms its solid business stance. The US government is the biggest retail spender in the world;
6) Something we have not discussed, which is VERY important: DAYTRADERS. There's a flotilla of daytraders looking for a new spec and GX is it. If you look at the ENE aftermath, you'll see the stock price soaring 100 percent a day immediately after the company announced BK- all on pure speculation from daytraders; GX not only avoided BK, but the current stock price is indicative of BK fears, and thus artificially reduced. Speculators will ride GX like a wild pony all day long. The results will be fewer shares available for short covering;
7) Combine daytraders with short covering and a final trading day that's also a skip day between closed sessions with great news released after the close on a Friday and you've got The Perfect Storm. This could be bigger than anyone ever imagined;
8) John Legere. Through all the negative publicity, the Moody's downgrades, the Reuters claptrap, the false and irresponsible financials posted by Edgar Online, the stockholders beating up IR for a preemptive explanation, he kept his head and went about renegotiating the covenants and lining up gorillas like Li;
9) Broadband is in demand. Online retailers had a great holiday: AMAZON up 32 percent over last year; Yahoo! up 87 percent. The intelligence community was caught with their drawers down 9/11 and global information is the watch phrase of the future;
10) Debt. With an increase in market cap comes an increase in bond value and with an increase in bond value comes a rating improvement and an increase in ratings
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Help please,
Arnie |
