To: Richard Mazzarella who wrote (11960 ) 10/23/1999 3:18:00 PM From: Scott Wheeler Read Replies (1) | Respond to
Richard, I liked very much your analysis of the five possibilities that are unlikely. I agree it could be the company burning a few chairs to keep warm. $3MM would only dilute about 9%, an acceptable figure, IMO. A couple of weeks ago Ed suggested it might only be certain large holders throwing in the towel. I still think this is the better explanation. If there are 2500 - 3000 shareholders, I think it's quite possible that for a certain percentage of them (or of any shareholder community)once a certain hardwood floor had been breached, they are just not going to wait any longer - they cut what they perceive as a loss and move on. And then others see the slide it creates and follow, and so on. This could explain the volume, IMO. Let me ask it this way - what do YOU (rhetorical) think is the proportion of shareholders that would bail once 25 cents, ten cents, five cents had been breached (regardless of what they've heard about a new process)? I think that number could be considerable, especially if that group were relatively uniformed (are not internet-connected). I'd bet that only 25% of Global's stockholders read this thread, if that. Anyway it's gotta be less than 50%. For the half in the dark, it must be pretty discouraging to know no more than the fact that your investment has dwindled to single-digit percentages of what you'd originally paid.
