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

To: Jon Koplik who wrote (399)	9/19/2000 10:58:03 PM
From: Maurice Winn	Read Replies (2) \| Respond to of 543

<font color=green>$100m!!! Having read a bit of stuff, it seems that this new fund-raising effort positions Globalstar to do a little more than watch other people sell shares into a short squeeze. Globalstar can use, or not use, this new funding facility. It has cost them $5m to get lined up to do it. Suppose on Thanksgiving Day, as carefully planned, the short squeeze takes off. Globalstar doesn't need to watch in amazement. They can sell shares to Bear Sterns who will unload them into a rapidly rising market. So rather than Globalstar watch those rabid SI shareholders sell their shares at $100, Globalstar will be able to sell some at $50. I noticed that the kneejerk reaction of MamaBear, Zeev whatsit [and me] was "Oh, oh, looks like a bottomless pit". After a bit of reflection, it seems, once again, a very good move. If the share price does drop, Globalstar can still use that money, but they are unlikely to pick a really bad time to do so. They have got money now [before selling these new shares] to last until March 2001 or thereabouts. Since there is such huge shorting pressure, this is an important part of the financial game that Bernie Schwartz might as well play too. Since he controls the timing of news releases, he can wait until Globalstar announces their minute sales are going through the roof and there is a backlog of handset orders and Q! Ericy, Telit and Schlumberparty can't keep up demand. He would NOT be able to sell stock to Q! at short squeeze prices, so he might as well drain the shorts as they run for it. This could be a LOT of fun. The bottomless pit type sales of shares is NOT going to be the position here. I do admire this arrangement. Sort of surprising too. A bit like the Lockheed financing was a bit out of left field and required people to actually read contracts. If there is a big GlobalstarUSA promotion in October, we should have a very fun Thanksgiving. Anybody want to admit to being a Globalstar short? Go on, you should be proud of it and enjoy rubbing the stupid longs' faces in failure. Dweeber? Where are you? Anthony@jail? MamaBear? Zeev? Any shorts out there? Hello!!! This is like an echo chamber... Come out, come out, wherever you are. There must be some shorts in SI who are following this and are not afraid to flaunt their prowess. Wimps!! Mqurice PS: Geoff Goodfellow is NOT a wimp. He is a closet short who is dressed in long drag. Good move Geoff! <Bear Stearns agrees to buy an indefinite number of shares, capped at $105MM. In return for giving GSTRF the right to say "when," Bear gets a discount on the shares.> So, if shares go to $50 a share, Globalstar will only have to sell 2 million shares. That isn't much dilution. I can live with it. Gee, it won't be much use to shorts though. They'll need another 35 million...ooops, maybe Globalstar should do the same deal with another five Bear Stern types while the squeeze is primed. If it all turns to nothing and things go badly, Globalstar can always leave the Bear deal and just go to the service providers or Q! with a 'Well, we really do need more money now' deal at $7 a share.