To: craig crawford who wrote (5184 ) 2/2/1998 8:23:00 PM From: John Curtis Read Replies (1) | Respond to of 10479
Let me first state that I've been both long AND short FIBR. Profit is profit. But I'm curious about your statement, specifically: "Even the most worthless stocks can rise for short periods of time. The key is to follow the money trail. You have to understand that FIBR has supported it's business by issuing stock and forms of debt that are convertable into stock. You also have to understand that people who give FIBR money for preffered shares or warrants or whatever obviously want to make money. FIBR needs to attain certain levels for those guys to make money. FIBR management (any management for that matter) knows that they won't get more money from people through their various forms of financing if those people can't convert their preffered/warrants whatever into cash by selling. Hence you see FIBR climb it's way up. A convenient rise so people can convert and go on about their merry way. I would suggest that people are converting and selling their shares when FIBR gets above 6. Others are probably selling in the 5's." So far what you've stated sounds like normal business survival tactics to me. However, by your tone it appears you're attempting to infer collusion between management and thosee share/warrant holders mentioned above as the reason for the recent stock rise. Or at least that's how I read it. Hmmmmmmmm......I'd buy the collusion argument, as an argument, if you backed it up with logic other than one you used, ie. a clearly decernible pattern of "pumping and dumping," that is, some sort of generally vague corporate pronouncements of future sales gains, OEM's sponsorship, etc., etc., etc., during the timeframe of this recent rise. Instead, this rise cannot be attributed to anything explicitly, or covertly, related to company activity. As far as I can tell they've been as quiet as a churchmouse. So I tend to think the rise is more likely related to the January effect. That is, allllll those folks who bailed at year-end for tax-loss reasons, are now jumping back in, and the more of a rise that occurs, the more they want to jump back in....all in all a rather self-fulfilling prophecy, eh? But, of course, that's merely my opinion. Regards! John~