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dfmantx
How do you know the "Russian fiasco", as you put it, is even in the mix. I doubt if AMEX would use that against GTE, if they had, in fact, insisted upon the company doing something which turned out to be ill advised. Wouldn't that be like shooting themselves in the foot?
Personally, I don't think it's as simple as it's been made out to be. We have no proof that AMEX insisted the deal be published as a material event...do we? All we have is hearsay.....no? We have no idea what info the company passed on to AMEX...if at all. Don't take anything for granted.
As for the RS, how did that hurt the company?
I wonder if
AMEX has a probationary program for marginal cases.....you know.." Go and sin no more"? Or, in keeping with the Biblical theme, maybe Dumas can pull an Abraham and offer Huff up as a sacrifice. After all, it's the offer that counts....ask Isaac.
Seriously, I'm convinced that, regardless of how this thing turns out, Huff will be removed as CEO. Someone has to be sacrificed for this, fault or no fault. That's the way of things in the corporate world and Major League Baseball....same principle. :>)
Talk about the irony.
"Even though AMEX is delisting GTE for the shareholders best interest."
Which shareholders' best interests are they talking about....prospective shareholders? They sure as hell can't mean existing shareholders.
WIDD....flip a coin. It's as good as anything else for someone who isn't sure what to do. For my part, I'm riding the stock to perdition if that's the way it goes. Most of the damage has been done already. Kinda late to close the gate now. :>)The risk of losing more has actually been reduced. My view is the upside potential from here is much greater than the downside. That's small comfort but it does make sense to me. I'll hold but I won't buy any more.
Happily, in my case, if I lose it all, my life style will remain the same. The ranch is still mortgage free. :>)
Good luck with your decision.
The buck
stops at Huff. It'll be virtually impossible for him to remain CEO....regardless of how this turns out.
seaflies
If you haven't put an order in by now you're too late. You'd be at the end of a long line. Brokers will give priority to preferred customers.
Better to wait for the dead cat bounce (if you're lucky enough to get one).
Me? I'm gonna ride this one out. Good luck to us all. We're gonna need it.....a lot of it.
"Rather useless to speculate."
That says it all.
G'nite.
"Does anybody think Dumas would talk about GTE the way the article said. I highly doubt it."
If he did, HE should be cashiered. You don't bad mouth your company to a reporter. If he wants to be contrite, do it with the AMEX officials. Don't make those statements to a reporter, for God's sake. It's like taking the witness stand and saying you're guilty.
We'll know more tomorrow.....maybe.
"Physician heal thyself" :>)
Do me a favor....
kill me first.
It's a bet!!
And I hope I'm sooooo wrong. :>)
A trading halt is rarely
imposed on the prospect of good news. I'm afraid we may be rocked by something bad.
Absolutely!
GTE has to inspect the parts as they're being fabricated and before they're shipped.
Careful BDay
Looks like you stepped into a boiler room. :>)
doc
We'd all better hope that the socialist candidate doesn't win. That would put all privately owned businesses and property in jeopardy....not a very comfortable place for GTE to be. I believe this guy would follow in Chavez's footsteps and possibly become the dictator Chavez is. Once one of these "people's candidates" gains control, it takes a full blown revolution to get him out.
You gotta
give' em a little time to do some creative bookkeeping. :>)
pszme
The following is misleading. It makes it appear that Lynch has been working for First Data since April 2006. I assume that's not the case.
"In April 2006, Mr. Lynch was appointed acting Chief Financial Officer, CFO for First Data Corporation - Latin America in Mexico City."
This ol "brane" has enough trouble computing as it is. :>):>)
"Competion is Good'?
That's nothing but clap-trap invented by someone whislin' in the graveyard. Theoretically it's great for consumers but I'll take a monopoly on a product every time.
Yep!
SHMs are generally disappointments for Joe Shareholder. They rarely provide useful information or blockbuster announcements. It's mostly reiterations and forward looking statements.....with a new shade of lipstick..
"....but if not, I'll be the first to agree that it's time for me to pass the baton to someone who can move the ball down the field."
Now that's one doozie of a mixed metaphor. :>)
I don't know if it's
still the case but I believe, in England, the loser pays the costs of the winner.
Sometimer a young struggling
company has to look for a "white knight " to help it through troubled times. There's a price to pay but it might be worth it.
As long as
they stay away from Venuzuela and Bolivia. Those Marxist regimes will eventually confiscate everything. It'd be like pouring money down a black hole.
The way things are going
Huff may not be around for the SHM. It could happen.
I agree gregmaster.
There's nothing in Prensky's email to Dino which causes me conclude he's the "known short seller". Better have something more concrete than that. He might be part of the conspiracy but I'm not sure he's the guy EDIG's talking about.
This statement in the response puzzles me.
"Shareholders were openly solicited to join this suit by a known short seller of GlobeTel's stock."
Who is this "known short seller?" Is this a fact or just some window dressing? I trust they can produce his/her name.
I think there's another shoe or 2 remaining to drop on this issue.
The company will probably file complaints with both the SEC and the appropriate law enforcement agency. That will be relatively inexpensive. Insofar as civil action, if none of the parties has significant assets, it would be pouring money down the drain. Even if we win a judgment, there's still the problem of finding and executing on the assets.
No need by the company to telegraph it's intentions now. I'd prefer to hear about it after it's done. Let Gentile and Jayson stew a bit.
"At this stage, therefore, GlobeTel feels it has pursued every possible avenue to assist Internafta in curing its default. Thus, it elected last week to formally conclude further efforts to salvage the Internafta transaction and to open itself up to new negotiations with other significant parties in Russia, including an important entity that has approached GlobeTel, regarding a wireless network installation in Russia."
Huff had better be VERY careful about this statement. Unless he has irrefutable proof of the comprehensive transactions with Internafta, a statement like this, without appropriate back up, will sink this company and land Huff in jail.
I hope they have their ducks in a row.
Doesn't make sense.
My guess it's a typo.
Something lost in translation?
"The plans of company are extremely arrogant" Arrogant? That's comical. I suspect the original was something like "aggressive" or "bold".
Bad translation...that's how wars are started. :):)
multivalue
".....Competition is good!"
For the consumer, maybe, but I'd rather own a monopoly any time.
"Competition is good"? Just another expression of "whistling through the graveyard". :):)
f
I'll give it a try but I could be wrong.
On August 31, 2005, the company entered into a subscription agreement with STEELHEAD Investments LTD, Nite Capital LP, and SRG Capital LLC whereby these investors are purchasing a total $4,500,000 in 5% convertible notes, with 3 year Class A Warrants to purchase up to an additional $6,818,181 in common stock of the Registrant.
Pretty straightforward. A loan @ 5% with a right to purchase shares up to a specific dollar amount by exercising warrants.
Under the funding arrangement, the promissory notes are convertible into common stock of the Company at $1.65 per share. Prior to any notice of conversion the Company has the right to redeem the note at a premium for cash, subject to a 5-day right to convert by the investor. The notes amortize at 12.5% per quarter payable each quarter in cash or common shares.
1.Fixes the share conversion price.
2.Gives the company the right to redeem the note @ a premium. . Not sure of the meaning of the "5-day right right to convert" provision. It could mean, the investor has 5 days to convert after the company gives notice of intent to redeem. Somebody help me here.
3.Appears like the principle on the notes must be paid back @ at the rate of 12% of the outstanding balance each quarter OR it denotes the premium the company has to pay for redeeming the notes. I'm not sure Again, I need help.
The Investors will receive one Class A Warrant to purchase one share of common stock for each that the notes would be convertible into had they been converted on the closing date (August 31, 2005) (a total of 2,727,273 shares). The per share exercise price of the Warrants is $2.50.
Seems like typical legal mumbo-jumbo to explain the obvious. The conversion price on the settlement date(8/31/05) is/was $1.65. If the conversion had taken place on that date, the lender would have realized 2,727,273 shares. This statement fixes the maximum number of warrants the lender can exercise @ $2.50 ea. I have no idea why they chose this tortured method to fix the maximum number of warrants. Probably satisfies some legal requirement.
The math reconciles:
4,500,000 divided by 1.65 = 2,727,273
6,818,181 divided by 2.50 = 2,727,273
Any contract lawyers out there?
tcr7309
My remark was intended as a joke. I guess there's no accounting for some people's sense of humor.....or lack of it.
willsimon
He could be in bigger trouble if it does happen. :)
BuggininTX
Personally, I hope the 2 Million shares given to Hotzone are worth $60 Million on the open market....don't you? Makes no diference to GTE what the open market price is. If Hotzone performs, they get 2 Million shares. If Hotzone performs really, really good, the shares will be worth more.
That's the way I see it.
Rocky
It appears I provoked a comedy of errors. Sorry! :>)
OOPS! Had my mind in the wrong decimal column. :>) Total of 2Mil post split ain't bad.
"Primary consideration for the purchase is 666,667 GlobeTel common
shares paid yearly for three years upon the successful completion of
certain developmental milestones."
These are pre-split shares, right? Please someone tell me these are pre-split shares. Even at that it's significant dilution.....equivalent to 133,333 post-split. Dat's a whole lotta shares dere, Andy.
design333
Yep....what would have happened if the company offered the shares as a secondary on the open market? How much money would it have raised? Too many unknowns with that scenario. This way, the proceeds were certain. That was worth discounting the price. Call it cheap insurance if you like.
As to the warrants, if they can exercise them at $5.09 and make a profit....great....that means we're in clover, too.
From recent placement:
FORT LAUDERDALE, Fla.--(Business Wire)--May 10, 2005--
GlobeTel Communications Corp. (OTCBB:GTEL), today announced that it has raised an initial $2.358 million in investment from a group of accredited investors.
GlobeTel announced today that it has accepted Subscription Agreements by certain large institutional investors and other accredited investors. The funds will be used for general corporate purposes and will allow the company to further accelerate its operational growth objectives.
Timothy Huff, CEO of GlobeTel stated: "This is a very positive event for us. This investment was raised on a straight Common Stock purchase with a very small discount to the investors, which was based on the previous five days VWAP share price. We also provided warrants to the investors to purchase up to 70% of their initial investment, at a price of 150% of the market price of our shares, which based on yesterday's close equals approximately .3838 per share. Assuming the exercise of the warrants, the total investment could be as much as $5.65 million."
I like that part. OK...we'll give you a discount on the current purchase but you're going to have to pay a premium if you want more. Of course, the warrants are sort of like an "option" for future consideration and might actually become a vehicle for a significant discount when the market price is appreciably higher. Given the impending "split", I assume the cost of exercising each warrant would be $5.76, post split. Let's hope they get their chance to exercise them. :):)
PeaceDog
I have to come down on ShakyGuy's side on this one. The signal will indeed dissipate in strength at the ratio of the square of the distance from the source. The issue of physical obstructions isn't relevant. There are no physical obstructions between the transmission source on the cell phone and the ship(unless you live in a cave) :>) Of couse, this assumes unobstructed line of sight.
The decrease in signal strength is essentially a geometric progression.
Example:
X distance from the source = Y strength
2X dist. = 1/4 Y strength
3X dist. = 1/9 Y str.
4X dist. = 1/16 Y str.
etc.
It's been 60 years since I taught this stuff at Scott AFB so I could be mistaken. :>)