There's always a tax loss carryforward from companies with recent losing years, but my understanding is, as with individuals, it can only be applied against taxes due. Uncle Sam, I'm sure, is not sending GBIT money. (Unless there's some IRS arcana going on here which a knowledgeable CPA could comment on.) So earnings of, say, .09 on which taxes have not been paid because of a tax loss carryforward need to be viewed as earnings of about .06 were the company fully taxable. (And that's how Wall Street will perceive it to level the playing field when comparing companies.) In the case of GBIT, with dilution of more than 100% of the current shares outstanding in the cards, earnings should further be viewed as more than halved. But if the company can grow its earnings on an impressive percentage basis, that's what'll impress investors.
New point: The desire of novice speculators to blame all negative comment or disaffection with aspects of the company on shorters (and it's typical in threadland) challenges my patience. The August short position as reported today in the WSJ is lower than the amount of shares I own in my own small position. The August short position is a minuscule 9,999 shares. You couldn't get a 35 second mini-squeezette out of that. I also view it as positive for the company that there's virtually no short position, as shorters of a stock under $5.00 are professional traders who are more objectively sophisticated and analytical about their positions than most individuals who bet on a penny stock. A strong non-hedging, non-arbitraging short position in a stock is typically a good reason for longs to worry and ask themselves what they're missing. |
