To: CF Rebel who wrote (4286 ) 2/14/2000 2:12:00 PM From: HW Bowman Respond to
CF Rebel: your efforts are appreciated in trying to sort through the convertibles, warrants, etc., and nobody has the time. Perhaps the real question is how much of your 'float', ie the stock not owned by insiders, is actually on the market, and not held as treasury stock for stock options, acquisitions, etc.. The IPO was 400mm AT 19 or something, that's about 20MM shares, which is abt 2 1/2% of the 750-800MM capitalization outstanding. That is the real float, not just what insiders don't own. That is an insignificant percentage given the big picture. There is a huge amount held as treasury stock to be used for stock options and acquisitions. In other words, what we have, us, the little guys, is merely a pricing mechanism. I quote from the 1998 annual report(although it's hard to determine the year from the text): pp 13-14: "At the heart of the GBLX juggernaut is the same motor that impelled the early success of MCI, TCI, and McCaw: THE MANAGERS OWN THE COMPANY, but outside investors command the cash flow from the high-yield issues. This means that the mangers are slaves to the value of the equity and cannot rest on the cushions of internal; cash flow. They must submit to the discipline of securing outside capital." (Caps added) The Mangers own the company, but they are perfectly aligned with equity valuations and therefore perfectly aligned with our pitiful 2 1/2%. They are working for us, but all the discussion and speculaTION ON THIS THREAD MEANS ABSOLUTELY NOThing, however astute and insightful. It's their game, and we should be happy that they let us in for 2 1/2%. That said, this is the investment of the decade. But nothing we say or do has any effect on anything. As some in past postings have speculated, 'you never know what this company is going to do.' ThaT'S RIGHT, WE ARE FOLLOWING ALONG BEbeHIND TRYING TO RATIONALIZE. (forgive unintentional caps). But this is the dream team, so it's ok. Hold, hold, hold.
