SHORT GNET to $90 as 6% US Treasury 30 Year Long Bond approaches.
Its really math, the higher the P/E, the bigger the discount is due,
when interest rates rise. These stocks (Internets) have no P/Es,
most have no earnings, little revenues, or are plunging sales revenues back into the company...same formula.
For those that do not understand this: Think of P/E as choices,
a choice to put your money out on interest, safe, with US bonds,
versus risk in the market.
The greater the risk, the greater the reward...or failure.
You borrow to 10 people, you want your money back, right?
The more risky, the higher the interest rate you charge them all,
particularly the deadbeat. You try to cover your risk of default,
particularly the deadbeat.
If there are no earnings, no assets (debt free), whose the deadbeat?
Will you get your money back?
If interest rates go up, stuff costs more, so you want to charge more,
you want a high rate of return ROR on your investment,
particularly from the deadbeat.
Otherwise you would put your money where it is safe, especially if
US Bond yiled are going up.
Guess what, they are going up again, approaching 6% again, closer today, but still okay, for now.
Okay, thats the discount that will happen, especially with large institutional investors, or investors that should be institutionalized, (like me I own 40,000 GNET).
Paul Allen's offer to buy UP the company at $90 expired.
Paul Allen has not made a new offer
Paul Allen has 32-34% of the company and has CONTROL,
Paul Allen does not need to buy MORE stock to keep CONTROL
there is no support above $90. Short had their way today,
I sold a chunk at $102, thanks, but I told you I would.
I am,
Truly yours,
-Crystal ball |
