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Technology Stocks : InfoSpace (INSP): Where GNET went! -- Ignore unavailable to you. Want to Upgrade?

To: Robert Rose who wrote (6980)	6/6/1999 9:38:00 PM
From: Hawkmoon	Respond to of 28311

Your argument makes a lot of sense. However, I would consider Paul Allen's stake in GNET to be akin to institutional ownership, wouldn't you? Nope. Vulcan's deal was preferred convertible. That means that Paul Allen offered $300 million as a debt that can be converted into common stock at (what was it??... approx $60??). (someone correct if I'm in error) That was why Russell had to hold off on the 2nd tranche of money until the corporate by-laws were altered to permit issuing out the necessary amount of stock to cover Allen's eventual conversion to common. The only thing that the deal achieved was to buy out some shares held by insiders in order to prevent their eventual sale into the open market, which would have been somewhat dilutive. GNET requires institutional support to soak up the float that exists now and is mostly in the hands of the small fry investors like you and I. Since institutions would rather WE buy their holdings of a particular stock in order to facilitate liquidity for THEIR positions, instead of the other way around, growing institutional support will be a major indicator of support developing. Regards, Ron