mide & all
Guess I'll try to add a little color to your post, this time.
I guess we both live in the gray area from time to time, because, we see the black & white and can't tell which is on top.
Well, the red, I just saw and posted about, is based on a "cause & effect" reaction, which could change institutional investment. Not the use or need for 100 million new cash in reserves, being expectable or justifiable.
Back to basics! A change in the institutional/short position balance, should effect the stock price & movement. Note the shorts decreasing and institutional increasing, occuring and the bottom turn starting. What PR came to change the PPs direction positive, resently?
Posters, including myself, could go on and on about our opinions, of use & need, but I feel this board is missing the point. IMO timing is the point! The timed size, while GTE's stock & the stock atmosphere, has been so negative.
Why fool around, creating major dilution concerns, at this time? Why not a smaller, 1 year look ahead, which would be more in line, after the $600 mill disappeared, to run the business on. Very poor business decision. IMO Very poor! I see different possible goals, then quick access to funds, for future needs.
Tripling the A/S in one year, with an exchange move up and 2 increases after, is not the markets norm, for any company. True the company doesn't opperate in the market, but business world and business needs trump market needs, but guys, our money is in the market, and the market does not normally react well to this type of company action! Warranted or not, justified or not.
Maybe message board posters are not aware of this, but Mr. Huff should be, as I'm convinced institutional managers are. So, here I am again, questioning why? Why is Mr. Huff doing something which may effect the stock, negatively? I know, because the BOD "MAY" want to buy something in the next 2 or 3 years. LOL IMO NOT !
I'll pick out a few lines, from a post at my board and trying to explain why. "In my tinfoil hat style." This makes no sense to me!
Tinfoil hat line;
"You have to remember the largest amount of cash being invested in GTE, is NOT from message board posters long loosing positions. It's from institutional, management, and funding partners. Of those, only the institutional, may be holding at a loss, and question the motives of the BOD. They don't get cheap options, or shares at market discounts."
opinion here;
They invest in numbers & performance. BIGGER numbers with no performance? What would you do? Add-on, like true believers? Not my investment fund.
Tinfoil hat line;
"WHY such a large increase, when the stock is weak? Why not do 30 or 50 million more now. Run the numbers; unused + 30 new, would give much more A/S cash reserves, then was used to buy Sanswire or Hotwire, who is management planning to buy???"
opinion here;
Seems to me 100 million was chosen for another reason then need, or future use. With 100 million more, they could buy themselves! Hint hint. And by asking for 2 or 3 years worth of quick action shares, not just next years like they should, seems to be more like over kill, because dilution concerns are not good for investment. Hint hint.
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IMO something is happening behind the curtain. And the lever being pulled is another big risk play, or known shoe in, for the stock. Everyone trading on black & white, or thinking gray, may just be getting another RED or GREEN Mr.Huff wheeling/dealing result move.
As always "cause & effect" are unknowns to the shareholders.
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