John, downward pressure is already there. One tech mutual fund is shorting LCOS now:
techweb.com
CMGI did not metion that how much precentage they intend to decrease, they just metioned in SEC filing that they expect to decrease holding required by predetermination amount. Please read CMGI SEC filings yourself carefully. Actually I do not understand the meaning "as predetermined" or "required to decrease holding". My guess is that they will dilute their holding by some sort of swapping to sell holdings to others company. I believe they will not sell LCOS in market, because any direct selling is bad for LCOS, therefor bad for CMGI. Look at last transaction, they sold part of NetCaffe (spelling maybe wrong) to Microsoft for 2 million dollars, and Microsoft owns now %5 of CMGI. The only direct sell I remembered is selling of AOL, which they got from selling the browser company to AOL. I bet CMGI is smart enough that they will only swap or sell LCOS to other company like microsoft. They have no reason to sell LCOS stock directly to market to dampen the stock. In CMGI history I never noticed any direct dumping of their major stock holdings (AOL case was different, their AOL holding selling was non-significant, AOL holdings was payment for browser by AOL).
I believe in CMGI. CMGI will decrease LCOS holding as they said, but I trust them that they will not dump LCOS to market. Any sharp down of LCOS is not good for CMGI stock also. CMGI has lot of cash, and almost minimal debt, they do not need more cash now. CMGI will be smart enough to lock in LCOS profit without dampening LCOS. I really like CMGI, they are so great!! read their home page or annual report, they sold a telecomunication company with holding time of only half year, while the profit was millions of dollars.
Although I believe in CMGI, I still short small portion of LCOS to hedge my CMGI long. LCOS can drop even without CMGI selling.
Henry |
