Hi Zorro:
I absolutley agree with you about the merits of their case--there aint any! The funny part of it is that CAWS has never, ever, given a timetable or published a schedule which includes New York City. The ONLY markets mentioned dealing with video, with a PROPOSED timeline, have been Norfolk and Boston and they have ALWAYS stated that the timing and execution would be determined by BANX. For the Internet delivery, Rochester and Conn. have been the only cities mentioned, and they were mentioned with the stipulation that FCC permission was needed first.
Yes CAWS owns MMDS rights in NYC and I am sure they would love to reach that market, but they have always indicated it was a "future" market and that the BANX agreement would determine timing. Their SEC filings have always stated this and have been very cautious about mentioning any dates about deployment in any markets except Norfolk and Boston.
As pissed off as I am at CAWS sometimes, I cannnot help but side with them on this.
As far as: "shouldn't we be embracing this unfortunate situation as a potential buying opportunity?": Perhaps, but each person needs to establish their own limits on how much they are willing to put into the CAWS basket. Of course, if it drops 50% or something crazy I'll be buying left and right because it'll pop right back up (atleast most of the way).
You are right, these situations often make great short term buying opportunities if the market over-reacts. Back when ValuJet was grounded and trading was halted, the stock, when re-opened on a monday morning opened at about $5 (after closing in the low teens before trading was halted). My broker bought 10,000 shares, held them for 2 days, and sold them at $8. Had he waited a few more days he would have gotten $10 for them. So yes, depending on whether the market over-reacts there may indeed be a buying opportunity. My guess--it'll drop 1/4, but who knows.
As many have pointed out, yes this may hurt the stock Monday, but it can't go down much lower. Most folks will see this lawsuit for what it is, and if this law firm has the reputation I think they do then the insitutional investors won't pay much attention to them.
Although I have no intention of actually joining their suit, I am going to play along with them a bit just to see what their plans are.
I agree that Mr. Kornblum should be appointed corporate counsel for S&Z and we ought to follow his advice.
I am going to call the CAWS corporate offices and IR offices today to see if I can get any answers; my real motive is to see if they are in on Saturday planning on how to deal with this or if they are waiting until Monday to think about it. That would tell me alot.
And Zorro, if CAWS doesn't pan out I think I have found our next investment opportunity: the treatment of municipal sludge. Check out this E-Mail I got below--what a bunch of crap.
****************
Hi: My name is Freddy Fuller. our company Thermo Tech Technologies is an emerging growth Company in the management of Organic wet waste and Municipal sludge, using a Proprietory Patent process. It has been in successful commercial operation for two years.
Our Home Page is: stockgroup.com
If you are interested please contact me and I will mail you a full package. |
