Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Globalstar Memorial Day Massacre -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (1)	5/8/2000 2:01:00 AM
From: Maurice Winn	Read Replies (1) \| Respond to of 543

I was asked "What's this cash account stuff?" If you have a margin account, your shares are held either in the cash or margin account section of it. In the margin account part you can borrow against that stock value to spend up large with the wealth effect or buy more stock. In the cash account part, you can't borrow against the stock. Brokers put the stocks in the cash account if they are low value [under $5 a share or so] or risky, or maybe you have only one stock, Amazon, and the concentrated position and broker's decision is that the position is so risky that although you have $10m in value there, you can't borrow against it or buy new stock using it as security. But if you have a spread position with a low margin balance, you can move your Globalstar Telecommunications Limited stock to the cash account portion of your holdings. What that means is that the short sellers can't borrow them, sell them and hope to cover later. It also means the broker who might have loaned that stock to a short-seller, will call the stock back in, requiring the short seller to cover, meaning buy some stock at market price to repay the loaned stock. What that does is cause a sudden shortage of stock if that happens to any significant extent. In fact, just the fear of it happening can make short sellers cover to avoid being caught in a rapidly rising market. The risk of such an event on Memorial Day might just be enough to cause the effect, even if nobody changed their stock to a cash account. But I'm going to do it! I thought three weeks was a good idea, to let the idea gel a little. Get a bit of 'momentum' going. See what comes out of the shareholder meeting and Globalstar results and let that settle in for a week or two, good or bad. Any questions, feel free to ask. I've never shorted anything and know little about it, but it seems to make sense in this situation with such a high short interest. Maurice

To: Maurice Winn who wrote (1)	5/9/2000 5:05:00 PM
From: Jon Koplik	Read Replies (1) \| Respond to of 543

I am trying to think of a witty line about Globalstar's survival. (Similar to things said in the U.S. "oil patch" (Houston TX, Oklahama City OK) around 1982 : "stay alive 'til '85" (and the joke version : "Chapter 11 by '87")) But, so far, no good ideas ... Jon.

To: Maurice Winn who wrote (1)	5/11/2000 8:32:00 PM
From: WR	Read Replies (1) \| Respond to of 543

( BW)(CA-CDMA) CDMA Subscriber Numbers Double in One Year Reaching More Than 57 Million Mobile Users Worldwide; Global CDMA Wireless Consumers Enjoy Wireless Internet and Information Services Today Business Editors, Technology Writers COSTA MESA, Calif.--(BUSINESS WIRE)--May 9, 2000--During a live, interactive Web cast today, the CDMA Development Group (CDG) announced that CDMA technology, in keeping with its history of rapid growth, has more than doubled its subscriber base within a 12-month period. CDMA now reaches more than 57 million users worldwide, solidifying the technology's position as one of the top two wireless standards. The CDG expects the continued demand for wireless Internet and information services, and soon the delivery of third-generation services (3G), will further increase CDMA technology's global presence in the near term. Today's announcement was made during a Web cast hosted by the CDG with leading wireless analysts Mark Lowenstein, executive vice president for wireless strategies at the Yankee Group, and Ken Hyers, wireless analyst for Cahners In-stat discussing "Wireless Internet -- Information Anytime, Anywhere." The Web cast can be viewed at www.digevent.com. From March 1999 to March 2000, CDMA subscribers increased 101 percent with North America reaching nearly 19 million and the Asia Pacific region holding its dominant position with 32 million. Now totaling more than 6.5 million, Latin America experienced the strongest growth increasing 321 percent. "The proliferation of wireless Internet and information services has made it an exciting time for the global wireless community, especially for CDMA operators and manufacturers," said Perry LaForge, executive director of the CDG. "With the upcoming rollout of 3G networks, CDMA will only continue to set record-breaking growth patterns." LaForge added, "CDMA technology's growth is really just now starting to begin. With China preparing for commercial rollout, and the continued success in both North and South America, CDMA operators and manufacturers are at a distinct advantage in that they have the opportunity to be first to market advanced services such as full multimedia capabilities." CDMA has achieved numerous milestones within record-breaking time. CDMA provides mobile operators and manufacturers the ability to offer a variety of value-added services today, such as wireless Internet and information services. In addition, CDMA technology benefits wireless consumers with industry-leading in-building penetration, longer battery talk and standby time, increased privacy and better security. The CDMA Development Group is a non-profit trade association formed to foster the worldwide development, implementation and use of cdmaOne. The 115 member companies of the CDG include many of the world's largest wireless operators and equipment manufacturers. The primary activities of the CDG include development of cdmaOne features and services, public relations, education and seminars, regulatory affairs and international support. Currently, there are more than 500 individuals working within various CDG subcommittees on cdmaOne-related matters. For more information about the CDG, contact Christine Bock of the CDG News Bureau at 714/540-1030, ext. 11, e-mail chrisbock@bockpr.com, or visit the CDG Web site at cdg.org. (a) Editor's Note: CDMA Growth Charts Are Available By Contacting Christine Bock or Valerie Christopherson at 714/540-1030 --30--CJG/se* CONTACT: CDG News Bureau Valerie Christopherson or Christine Bock, 714/540-1030 fax 714/540-1060 vchristopherson@bockpr.com KEYWORD: CALIFORNIA INDUSTRY KEYWORD: INTERNET TELECOMMUNICATIONS Maurice, I'am long the stock in cash account. Won't be selling anytime soon. Thanks for all you do. Regards, Ray

To: Maurice Winn who wrote (1)	5/26/2000 1:59:00 AM
From: Maurice Winn	Respond to of 543

viwes.com That gives the short interest. It has increased from 25M to 28M. So shorts obviously do not see any problem with the possibility of dehypothecation. < from Quicken.com. ..... Shares Short ....Avg Daily Volume .....Ratio* 05/00..... 27,709,114..... 3,704,551..... 7.48 04/00..... 25,145,028 ..... 4,062,032..... 6.19 03/00 ..... 20,150,284..... 5,935,642..... 3.39 02/00..... 18,351,691..... 4,139,746..... 4.43 01/00..... 19,055,160..... 6,545,128..... 2.91 12/99..... 15,882,543 .....1,947,070 ..... 8.16 Ratio = Shares Short / Avg Daily Volume; it may be used as a rough measure of days to cover. + monthly data as of settlement on the 15th of each month.> I suppose that means that shorts think they know a lot more about short term or long term price movements than the longs who have the prerogative of calling in their stock. They also presumably have a good idea of how many people are likely to dehypothecate and what effect that would have on the price. Presumably nothing or if the price does go up, then they plan to just stick with it or short more and watch it slide to low or zero. Just as I, as a long, buy and am prepared to see the stock slide from my $15, down to low [not zero] and then up again to $1000. Either way, it won't make any difference in the long run because all that will matter is the earnings of Globalstar LP over the next 20 years and the share of that which we Globalstar Telecommunications Limited shareholders own. Except that, maybe we'll be offered some interest rate for lending our stock. While funding is being needed for GLP to stay in business, it might matter quite a bit to the price they get for new shares they might issue to new investors. The artificial large short interest, which has increased the 'credit' represented by GSTRF stock will have caused the share price to be lower than would otherwise be the case. So, calling in our shares seems a reasonable, sensible and legitimate thing to do. I've done it. Over to other people to decide where their interests lie. It's a free world! [Unless you live in some countries]. Mqurice