If the legal type manipulation Low has so brilliantly described is occuring, then it is an extremely clever, judo kind of move in the sense that it takes advantage of the 'natural' market short and long manipulation forces (legal and otherwise) and uses them to the advantage of the company's funding requirements. Rather than fight the traditional and uphill battle of trying to get a higher and higher share price to sell shares into the market and raise funds, which is essentially impossible for a start-up like Globetel, this approach dodges the bullets and rides the waves by taking advantage of the liquidity provided by shorting; thus avoiding stagnation and its attendent failure. Maybe that is what makes it such a difficult moving target for those who would just as soon blast it out of the water.
If AMEX is calling us out for using this technique; deeming it not to be in the interest of investors, then that begs the question "which investors?" since (again as pointed out by Low) it can benefit both long and short swing plays. As a long term investor it does not do me any good now, with the notable exception that it keeps my long term prospect alive until such time as it can truly grow profits. The only group it does actually hurt are theoretical long term shorts, but they would want to see the company go bankrupt so imo shouldn't be considered. It doesn't really make sense for AMEX to delist therefore, which lends credance to alternative theories on the motives of AMEX, or perhaps some in the organization, or maybe, as was suggested, they are responding to avoid being caught up in the class action suits. Apparently stagnation and failure are what Chris Byron and those like him want, or at the very least that is the effect of their sensationalization of the issue in order to get the public's attention and readership.
To those who say it is being done because they believe GTE is a scam, I can only say that I do not believe that GTE is a scam.
AI
