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

To: Geoff Goodfellow who wrote (272)	5/30/2000 7:36:00 PM
From: Maurice Winn	Read Replies (2) \| Respond to of 543

Geoff, the noise in stocks is so great that it's always hard [actually impossible] to say how much price movement is determined by which factor. My guess on the G! down during a big Nasdaq upzoom is that some people seriously did think they would do a quick buck-making so bought some stock several weeks ago planning to sell if the price went up. They have now learned yet again that people should buy stocks to earn the profits from sales of goods and services to customers who choose to buy from their company. Trying to time markets and make short term speculative gains is risky at best. They have now, I suppose, sold and their selling has pushed down the price. They never really wanted to own the company so had no interest in the actual facts. Then again, maybe it's just more gloom and doom as handset prices are cut in Europe and gateways roll out and service providers start operations and the steam-roller gathers momentum. As you say, the short interest has increased so there are plenty of people who think the price will go down, not up and that if there was going to be any effect from the GGMDM then it would be trivial and not affect the long run price of G! which they expect to be downwards. I suppose the naive speculators believed WSJ.com and Carrie Lee that this was some sort of manipulative price-fixing collusion. Well, I guess they will now have figured out that it was no such thing. What it was was a suggestion for people to restrict the lending of their stock, which some will have chosen to do and others will have not, in the usual free-running, open, fair, informed, blah, blah, blah, market. Nobody co-ordinated anything. Nobody knew who had what stocks. Nothing was secret. Nothing was to be gained by any individual over any other individual. Nobody had inside information. There was no 'group'. You too are in the 'group'. It was a suggestion and it seems that the suggestion was not taken up by enough people to cause a price rise and reduction of short interest. As you point out, the short interest rose! The number of shares owned by people has increased significantly! The number of people holding shares and expecting dividends has increased [assuming a uniform holding per person]. There are nearly 30m shares sold short. That means that there are nearly 120m shares which people currently have in their share portfolios which they think are going to share in the profits from Globalstar LP. BUT Globalstar LP has nearly 300m [fully diluted] shares and GSTRF owns 100m of those and that is all the profit that GSTRF shareholders will get. So, if profits are $3bn, GSTRF shareholders will only get $1bn of that to divvy up. That's $10 per share of actual issued stock. I wonder who gets that payment - the original owner or the one who bought the stock from the short. Both have the shares showing in their account. Oh well, one of those weird things from having shares all over the place which are borrowed, not owned. I suppose there is a rule for that. But it seems odd to me. I guess the rule is that the short has to pay the broker from whom they borrowed the stock any dividends which are paid by Globalstar Telecommunications Limited. That's a bit of an upside risk for a short. They would NOT want to be holding Globalstar Telecommunications Limited when the price is $300 a share and they have to pay $10 or $20 a share to the broker who loaned them the stock. That is a BIG upside risk with no end to it. The most I can lose is $9 a share [at today's price]. Shorts can lose - wow! they can lose $300 a share in price plus an ongoing [assuming they continue to hold their shorts] $20 a share per year. Shorts have little to gain - 100% of their short price and HEAPS to lose. Unlimited upside loss. Scary! Shorts need to be highly analytical of a company they short - much more so than longs need to be. No wonder you chickened out of your shorts. The rest all will sooner or later. I'd guess about, oh, September or maybe October. Yes, October seems more likely. Then we'll see a serious short squeeze whether anyone else dehypotheticatically calls in their shares or not. Over and out...I declare this thread dead and nobody is allowed to post here anymore because the WSJ.com and Bill say that I am the big ring-leader. Actually - I can stop some people posting because it's moderated and I'm the boss. I know, I'll stop Dweeb! It would be such a laugh if he bought stock planning to sell on the spike. Oh to be a fly on the wall. Hahahahaaa!! By the way - I did tell you all that the Nasdaq would bottom thanks to the GGMDM following my call for Q! and AWE and everyone to dehypotheictaitlelsy. My manipulation obviously worked on a far grander scale than I imagined possible. Everyone was so busy with the rest, they forgot about G! Never mind, we'll catch up in the next few months. Mqurice PS: Thanks SurferM! NOTE: Just for fun, I put Jimbo Cobb out of his misery. Jimbo, you are dehypotheticorespdnsended from this thread = you can't post anymore....

To: Geoff Goodfellow who wrote (272)	6/16/2000 4:42:00 AM
From: Maurice Winn	Respond to of 543

Geoff, my good fellow, how are you today? How's that short squeeze $8.50 purchase going? I imagine that intraday $5 range started to make you twitch a little. So, do you want to report in on when we can expect the short squeeze to start? I'm all for it. But dehypothetical market manipulating dehypothecating didn't work, so we need Plan B. If we all dress in short drag, maybe that will do it. Globalstar is more fun than the wooden roller coaster at Disneyland. I reckon 100mph at $3 should really get knuckles white and queasy feelings going. DiamondH bailed out, jittery and trembling with fear, short of an arm and a leg. I'm still on board! Wheee!!!! Mqurice