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To: KyrosL who wrote (17501)9/30/2000 7:25:43 AM
From: Badshah J.Wazir  Respond to of 29986
 
Hey Kyros,
The probability of G* being a successful,thriving business entity is better than 70%, in my book. That is why I am holding this speculation. But before we see the success,the share holders have to go through gut wrenching volitility and market speculation of all kind. I believe we are close to the end of the tunnel than the beginning. Time is on our side,willing to wait one year(ltcg.)to get the rewards. Just my take.



To: KyrosL who wrote (17501)9/30/2000 7:46:29 AM
From: aknahow  Read Replies (1) | Respond to of 29986
 
KyrosL, I really appreciated your probability analysis. How would you look at the situation based on not selling full capacity? Indirectly the capacity issue is addressed since one would tend to believe that your different price assumptions are the other side of the coin of capacity use.

At the giveaway price of 12 cents/min. it would seem difficult to believe G* would not sell all of them. The market however seems to be evaluating the bonds and the stock as though there were a problem making sales at any price.



To: KyrosL who wrote (17501)9/30/2000 8:44:41 AM
From: rhkohnen  Read Replies (1) | Respond to of 29986
 
Your analysis has no correlation to bankruptcy or the markets belief of bankruptcy. Stock prices relate to what the market believes is the value of the company. The base for a company’s value is its book value. A better metric for Bk would be bond prices and cash flow. Companies go Bk when they can’t pay their bills. That happens when they have a negative cash flow and no way to finance their expenditure. That is not the case with G* based on the current level of financing.

Chrysler declared bankruptcy in 1979, but their price never got below $5 per share. I know because I bought it. I wish I still had it.<GG> It’s bond price never went down to zero. It reorganized and flourished to be the company it is today. There are a number of other companies.

You take a straight-line approximation based on some fictitious points. If your expectations were not as great then your chance of $0 price would increase. Based on that assumptions companies, which have the highest price potential will have the greatest chance of going Bk. Makes no sense. Bk is an event not a point on some line. Companies which have stock price vales far greater than G* have declared BK. John Mansville did it because of the asbestos scare, and the next one I expect will be Firestone. But even in these cases the stock price did not go to zero.

Stock price depends upon a number of factors, referred to as Fundamental Analysis. If it could be done by some simplistic mathematical formula, then you would see almost no volatility in the price of the stock. Bk is not an issue till the next round of financing which is 2nd quarter 2001, baring acts of God.

Now if you are saying that G* has only reached 5% of its potential, then I can go along with that. That would not be so bad for a company, which just started commercialization 3-6 months ago. The key is are we going to see revenues and earnings moving in the right direction. Tune in Oct. 30 for the next episode of the G* soap.

Best Regards
Bob