WAS A LURKER; NOW A SMIRKER {:-)>
My hat is off to you all. An awesome job on this thread, which I have sucked electrons off for several months now. (While waiting for GRNO to recover, I just had to pick up 20K shares of this little beauty....
For vic or Raleigh or whomever--what does the issuance of an IPO like FNET do for the parent, FTEL, who owns 50% of it, when the IPO is scheduled to be priced at almost 3 times the present value of the parent? Is there some math involved here that I am missing?
Also, does Frank have any plans to offer IPO shares to current FTEL holders? As you know, a corporation can instruct it's investment banker to issue IPO shares AT INITIAL PRICE to whomever it wants. Often, purchase by existing stockholders is seen as a vote of confidence, and is valued by the investment community (after they get over being pissed at losing shares that they usually give to their buddies and "special" clients.)
With regard to the MM nonsense, when a stock rises like this, so quickly, they do naked shorts. That is, they sell shares they don't own and don't even try to borrow. They then drop the bid, scare up some shares which they buy at dirt cheap prices, and voila, profit. The EXTREME RISK of this game to them is when real news hits, and the stock roars away from them, they are left to cover short positions at even higher prices since no one will sell to them at their articially lowered bids of yesteryear. Sometimes they will roll shorts; that is cover a short position with new borrowing of shares, going from house to house to cover. They back this "rolling short" tactic up with rumor mongering. They will join a thread, ("wolf in sheep's clothing") and try to panic some newbies or other weak hands into giving them shares cheap. THAT IS THE TIME FOR SWEET REVENGE BY HANGING TOUGH.
Sorry for the rambling....I guess what I mean by all this is that good news is like light to a vampire; it kills them. SO hang for the good news and enjoy the carnage; it will be them, not us for a change.
Thanks again to all on this thread for your humor, insight, and analysis. 70 bagger and counting.
Robert |
