SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : General Magic
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Seconds Out who wrote (9899)1/9/2002 12:02:45 PM
From: dgurgel  Read Replies (1) of 10081
 
Speculation On Market Games

(Speculation) Jan 7 – 8 Steady drumbeat of PR fluff. Stock starts at $0.43 and moves to intraday high of $0.57. Did future PIPERS short 3 million at average of $0.55.

(Speculation) Jan 8 – Jan 28 Quiet on PR and price drops to $0.46.

(Speculation) Jan 23 – PIPERS sign deal to invest $5 million at 25% discount to next week’s average close.

(Speculation) Jan 28 – Feb 1 Price averages $0.44 to set purchase price to PIPERS at $0.33 for 15 million shares. 3 million used to cover short, pipers 12 million long.

(Speculation) Feb 7 – Substantive news released and price goes to $0.52.

(Speculation) Feb 7 – Feb 21 PIPERS sell 12 million at average price of $0.50 and price ends at $0.47.

(Speculation) Feb 20, - PIPERS out with profit on shorts of 3 million X (0.55 – 0.33) = $660,000 and with profits on long of 12 million X (0.50 - 0.33) = $2,040,000. Total profit is $2,700,000.

(Speculation) Feb 20 – 92 million common shareholders as of Jan 7 end up with valuation increased by 92 million X (0.47 – 0.43) = $3.6 million.

(Speculation) Recap - New PIPERS with 14% of total post-deal common (106 million shares) get 42% of the increased valuation. Old shareholders with 86% of the post-deal common get 58% of the increased valuation (and acclaim Russian a hero).

Did last deal go something like the above? Is paying the PIPER the cost of keeping GMGC afloat?
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News