To: pcstel who wrote (17695 ) 10/6/2000 7:15:36 PM From: Rocket Scientist Read Replies (1) | Respond to pcstel, as far as the BS deal, until this morning I hadn't read the detailed agreement, and was puzzled myself about what was going on. When I first heard about the deal during my trip, I suppose I thought, like Maurice, that the company would sit on it's "put options" until an opportune time and sell stock at, say 20$/share or better. Then, these last two weeks, we saw the takedown notices appearing every couple of days for seemingly random amounts of stock and I got concerned. But now, having read the agreement, I see it's a pretty mechanical, almost automatic process. I expect that every second business day for the next 9-12 weeks, the company is going to sell 10% of the previous-two-day's volume into the market.....unless of course the stock drops below 4 1/2.....and the market will just have to deal with that. In fact, it already has. G* has sold 3.2M shares so far under the BS agreement for 28M$, representing dilution of just over 1% to all other s/h, while the stock price has declined by over 35%. But the fundamentals are exactly what they were on September 18, except that G* has strengthened its balance sheet. Long term investors who liked the stock at 12 three weeks ago, should love it at 7 1/2.
