Global Diamond Exchange, Inc. (GBDX)

[Tacoz]

I asked that question too and someone here answered me---. Part of the problem is this: the GBDX owns alot of the shares, I think maybe 65% of shares were not released. So if the company starts buying the 35% from people like you and me, and keeps buying and buying and buying, well they may in the end wind up running up the price so ridiculously high it was even above 1$ a share because thats supply and demand. And after all that, the GBDX still owns a majority and so the buyout company could overpay and still be unable to take over the company. So if alot of people sit on their shares and refuse to sell until it hits what they believe the company is worth, no one can buy all the shares at the current price.

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Total Capital Stock Authorized 975,000,000
Total Authorized Common Shares: 900,000,000
Total Outstanding Common Shares: 355,054,517
Preferred Class A: 25,000,000
Preferred Class B: 50,000,000
Management intends to utilize preferred shares for acquisition and expansion rather than common stock.


-----------------------------------------------------------Posted by: braghest
In reply to: h2omd0 who wrote msg# 39733 Date:4/21/2007 2:46:34 PM
Post #of 39765

No one knows what the deal is. However I see people talking about 0.05-0.07 are out of their minds. Ask yourself hard questions, why would any company pay 0.05 for this stock when they can buy all shares below 0.01. I also believe the transaction would involve the company take most the cash and pay some to retire the shares, most likely the buyout price is max 0.015-0.02. I would be shocked if they pay more, most money will be paid in cash. Don't get carried away, ask yourself why would people short the stock even at these levels if the buyout price is 0.05 !

good luck