jfburk,
First, re-read my first sentence in prior post----clearly acknowledges GTE response today was to NYP, not Prensky. As far as Prensky, I don't KNOW his agenda and neither do you. I do KNOW that he went LONG when he thought the GTE RU deal would happen---REMEMBER THIS FROM PRENSKY?:
March 06, 2006
Taking the Long Side on GTE
This morning a story came from Maxwell Murphy, a Dow Jones Newswire reporter. Mr. Murphy was the reporter who intereviewed Maxim Chernizov of Internafta, who said that he was considering raising the initial payment to GlobeTel (Amex: GTE) from $150 million to $300 million.
This morning Maxwell adds to the mix a conversation he had with John Leinwald, GlobeTel's general counsel. Here's the relevant text from the article:
According to John Leinwand, GlobeTel's general counsel, the financing slated for next week will be a $300 million letter of credit, which the release said will be syndicated by several "tier one European banks." Leinwand said the financing took has taken this long because the banks had to get to know Huff and GlobeTel before releasing to the relatively unknown company funds as big as its market capitalization. A letter of credit from the banks will be used instead of a direct payment to GlobeTel from Internafta for several reasons, Leinwand said. The banks want to assure that no one firm is taking on too great a financial risk and to ensure
the funds will legally and appropriately be transferred from Internafta's accounts to GlobeTel at a measured pace the banks can control.
Leinwand said he expects the banks' names will be revealed after the financing commences, and a press release detailing the initial amounts and terms should follow announcement of the completion of the first stage next week.
People lie all the time. But when an attorney and a member of the Florida bar (I checked, he graduated from the University of Miami and was admitted to the bar in 1995) says that the deal will be structured as a letter of credit and that its' taken so long because the banks "had to get to know Huff" it lends credence to the Internafta $600 million story.
I think the odds we see a closing in the next two weeks have gone up to 40/60. Therefore fair value would be around $3.30 under my calculations; I entered a long position this morning at $3.4ish.
Second, the ALLEGED compensation to "insiders" in 5/22 NYP is in SALES---not stock option grants: "Much of the fishiest selling in GlobeTel stock seems to have originated from the Boca Raton office of the brokerage Raymond James, where several of the company's top insiders maintained accounts."
Now I have no idea what "fishiest selling" refers to---and today's GTE rebuttal also left us with no clue by failing to address the issue......which is clearly more relevant to SH than Rubikon.
We need intl. CONTRACTS...enough already with the intl. CONTACTS.
