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Technology Stocks : Global Crossing - GX (formerly GBLX) -- Ignore unavailable to you. Want to Upgrade?

To: Theophile who wrote (10048)	2/26/2001 12:22:05 PM
From: Ally	Read Replies (1) \| Respond to of 15615

Martin, WRT Call Options: I used the term generically and not necessarily referring to the retail options such as CBOE. Institutional call options could be any form of forward contracts with counter parties... I can't tell exactly how or what just based on brief review of annual report descriptions. However, the main point is that at end of structured maturities, the shares are either disposed or the shorts covered. WRT Convertible Bonds: CIBC and CNA referred to "shares" and not convertible bonds. Convertible hond holders could also hedged by shorting a grossly over-valued stock, however, would cover rather than dispose (income objective of bond holders). Your information (or previous poster during time when I wasn't on this thread) on the presence of convertible bond shorts would add, rather than replace the recent information on CNA and CIBC hedging. WRT calls being "prohibitively expensive", it is essentially a myth especially in context to institutional contracts. The market supply/demand dynamics usually take care of any "rip-off" premiums that may exist. The pricing of all forward contracts invariably settle down to current value, strike price, discount rate, and time period (Black-Scholes pricing formula). WRT Moderated Thread: Certain types of moderated threads on SI may hold arguable merit, especially those with restricted focus of a technical nature. However, a moderated thread on a stock would and should be prudently regarded by all with a healthy dose of skepticism. Invariably, the thread will turn out as a bias forum bearing those information and opinions viewed "acceptable" by the moderator. As a shareholder of GX or any other stock, I'd like to receive all views - pros and cons and figure out for myself whether to dispose or hang on to my shares. An occasional skirmish is a small price to pay for unbounded free expressions. Besides, any thread community worth its salt will be able to handle the occasional trouble maker. WRT to IRUs, you've certained mentioned some valid points which I wasn't aware of before. I would still like to hear from management more details on the matter, and would be nice if Fez hears what management has to say at the coming meeting. Selling IRUs is almost admitting over capacity (or underfunding), which is one of the main points of GX critics.