I would respectfully disagree with you regarding staying debt free. In addition to what ITFL mentions, a successful debt offering would also materially increase CALLs standing with the institutional community, as the due diligence procedure for debt is much more stringent, thereby instantly granting CALL additional "street cred"
Agreed on the civility, have always respected your opinion, and I'm sure you know more about telecom than me.
As a counterpoint on the supply of stock issue: it seems very clear to me that all these short attacks over the past two years have been timed to drop the boom on DB so they could force/scare him into selling his shares on the cheap (e.g. Q2 2012, Q1 2013). And while you are technically correct regarding the flow of the shares on this last tranche, it is very clear to me that DB sold most of these shares in the last 18 months via prepaid forwards or other OTC hedges (which notably don't need to be disclosed on Forms 4 or 5....funny how one of wall st's most lucrative businesses have regulatory exemptions, right?), which as someone who has traded those professionally could attest, most definitely do have a major effect on stock and commodity prices. Plus, the institutional buyers and management were incentivized to keep the share price low until DB was cleared out, and now not only is that incentive gone, it is reversed. So now that the shorts no longer have their "lean", the risk/reward gets much dicier for them.
That being said, new management still needs to prove itself. I did think they would have been more aggressive once their stock and options were awarded in July, but now it looks like they were waiting to clear out DB and put that issue to bed before really ramping up (and truthfully, that's what I would have done).
Time will tell, but either way hopefully this stock should get interesting again. Cheers
Sentiment: Strong Buy
I think it's been clear to anyone with half a brain that DB has been dumping shares for the past year, and that has been what is hurting the stock. The real buyers of Dan's stock (smart institutional money and insiders) have been ok with this as the lending rate was so generous, plus they could sell options, more than covering the decline in the stock price. But the bet you are now making is that firms like Blackrock and Adams St didn't have the foresight to have a game plan and exit strategy outside of just wantonly dumping stock (hint: you can go to their websites and see that they know exactly how to handle these situations, they're not trying to hide it) And now the single biggest seller of stock is finished. It doesn't take an Econ Phd to figure out what happens when when demand stays the same or rises, but supply decreases (once you guys clear out the weak longs)......
Sentiment: Strong Buy
While I admit I was too early on my call for the bounce in July, now this is looking set to go. Borislow's supply of stock has been keeping CALL down for the past year, and now he's done selling (you could have inferred this the other week once the stock's short rebate went way down).
Question for you amateur shorts and weak longs: what do you think happens when the professional shorts who have been driving this stock down, forcing DB to sell at reduced prices to them, no longer have stock to buy from Dan? And/or the professional longs start pumping things up?
Looking forward to the conference call, and to a great finish to the year....
Sentiment: Strong Buy
Correct me if I'm wrong guys, but isn't the issue that CALL has used up all it's US based NOL's which has increased it's tax rate, and still has Israeli NOLs to use until the cows come home? Please explain what I'm missing here.....
Thanks. Also, from the 10Q, do you have any thoughts or info regarding the Arthur M. Bussel - As Seen on TV lawsuit? Wasn't real clear what was going on there, and am hoping someone on this board knows the story......
I've been away for a while, and am getting caught up on CALL (doesn't look like I've missed much). Can you please elaborate on the dismissal of all seven lawsuits? I couldn't find that much on Bberg Law, thanks in advance.
Would be nice to see something out of mgmt by the end of the year. I'm still a believer, but at some point you have to write off a trade as dead money and move on to greener pastures, really hoping that does not turn into the case with CALL