posted
not looking good...most times if it is good or neutral news the PR is out within a hours or so. Like I said the main reason they would hold it past market close is if it is bad...This give people the weekend to soak it all up and not just bail out on the news. It may not be bad over all but just the PR could cause a panic because people over react too fast.
quote "A trading halt—which typically lasts less than an hour but can be longer—is called during the trading day to allow a company to announce important news "
-------------------- If all goes well then great, if not, make it work.
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posted
It could be good or bad news...trading is supposed to be stopped if the news is judged 'material' in nature. --------------------------------------
What is Material Information?
Trading while in the possession of inside information is not a basis for liability unless the information is "material." Information is generally defined as material if there is a substantial likelihood that a reasonable investor would consider such information important in making his or her investment decisions, or information that is reasonably certain to affect the price of a company’s securities. It is important to remember that materiality will always be judged with the benefit of hindsight.
-------------------- "Whether you think that you can, or that you can't, you are usually right." - Henry Ford
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posted
I'm thinking it is more likely positive news. Looks like the early morning action is a good indicator that there was a leak, especially with a 157k share premarket buy, and almost 2MM shares traded early. The Russian deal was already written off by many traders, and the recent $1 or so selloff would confirm that thinking.
Since it is a material event news release, I'd be more inclined to think of it as more likely positive. I don't consider a default in a as yet funded contract to be worthy of an actual halt. Just my opinion. GLTA!!
-------------------- It is impossible to make anything foolproof because fools are so ingenious.
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posted
I'm thinking possibly good news too...GTE has already released 2 PRs stating the Russian deal was 'stalling' or possibly 'off'...that was already factored into the PPS for the most part; trading wasn't stopped for that. If they did not have the Russian money, it made no change to their revenue stream, and therefore no 'material' news. IMO news is coming that is a 'material' change to revenues....
-------------------- "Whether you think that you can, or that you can't, you are usually right." - Henry Ford
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quote:Originally posted by stockvaper: It could be good or bad news...trading is supposed to be stopped if the news is judged 'material' in nature. --------------------------------------
What is Material Information?
Trading while in the possession of inside information is not a basis for liability unless the information is "material." Information is generally defined as material if there is a substantial likelihood that a reasonable investor would consider such information important in making his or her investment decisions, or information that is reasonably certain to affect the price of a company’s securities. It is important to remember that materiality will always be judged with the benefit of hindsight.
This has nothing to do with "MATERIAL Information". It is a trading halt for pending news. A person can hold material information and use it to make a decision...has nothing to do with a halt for news...
-------------------- If all goes well then great, if not, make it work.
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imakmony2005
unregistered
posted
Cant wait for them to let the cat out of the bag.
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posted
Does anyone know if they are trading on the German exchange and if so, any way to get news on that? I saw premarket up at 2.70 and was excited then. Perhaps Huff's US Bank wants to make sure the funds are transfered from Russia Bank? If I were in his position, I would halt trading...$600M is nothing to sneeze at...
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FORT LAUDERDALE, Fla., Mar 17, 2006 (BUSINESS WIRE) -- GlobeTel Communications Corp. (AMEX:GTE) today announced that based upon differences between the Company and Internafta on the financing process, the parties have agreed to revise their agreement to more accurately reflect the timing of payments GlobeTel expects to receive for the build out of the 30 city wireless network in Russia and allow Internafta additional time to begin making payments.
Internafta has informed GlobeTel that its bank recommends that smaller, more frequent, progress payments be established so that the necessary staged payments can be delivered to GlobeTel as and when the network is delivered and installed. These smaller, more frequent, staged payments do not reduce the total capital value of the agreement with GlobeTel Wireless or change any other terms of the agreement. GlobeTel will still receive $600 million for deployment of the network. The exact amount of the new proposed initial deposit, and the size and timing of the new proposed progress payments, will be discussed and agreed with GlobeTel once the bank has completed its due diligence and when the bank group formally accepts the terms of Internafta's proposed banking instrument.
The December 2005 contract called for four equal payments of US$150 million each, of which the first payment, representing an initial deposit, was to be received by GlobeTel in January 2006. On January 23, 2006, Internafta presented to GlobeTel a document represented to be a Standby Letter of Credit drawn on Banco do Brasil S.A. (Rio de Janeiro) in the amount of $300 million. This Standby Letter of Credit was provided to facilitate the first phase of the network construction. The banking instrument had a maturity date of two years and needed to be confirmed and accepted by a correspondent bank before GlobeTel could receive any funds from the instrument. The terms and conditions of what constituted an acceptable and functional banking instrument as it related to the December 2005 contract became a matter of interpretation between the parties. After extensive negotiations, Internafta agreed to take sole responsibility for facilitating the financing of their banking instrument in order to be able to present readily-available funds to GlobeTel.
Timothy Huff, CEO of GlobeTel stated, "We are in constant communication with Internafta and believe that so long as we feel they are continuing to work in good faith and so long as substantive progress is being made on the transaction, it is in the best interests of GlobeTel and its shareholders to allow the process to continue to its ultimate conclusion. This is a very large transaction that requires solutions to many commercial issues, the implementation of tailored banking facilities, and the conformance to many international treaties, regulatory requirements and legal matters. The parties continue to work in good faith and remain committed to building a state-of-the-art wireless network in Russia. We feel that the process must be given every reasonable opportunity to succeed given the commercial stakes involved."
GlobeTel is in regular contact with Internafta, both in person and via a series of telephone conference calls, concerning the progress of the transaction. Floyd Bradley, Managing Director of GlobeTel Wireless, met with Maxim Chernizov, the Director General of Internafta, on March 13th and again on March 15th in Germany in order to represent GlobeTel's interests in the ongoing banking process.
During those discussions, Internafta informed GlobeTel that its banking instrument is being syndicated by a consortium of banks and that the lead institution is a major European bank, instead of the bank that GlobeTel had started the process with. Internafta has stated that the banks have successfully completed their due diligence regarding the underlying assets of Internafta's shareholders that collateralize the banking instrument. The remaining financing procedures are now under the control of the lead bank, and GlobeTel has been told by Internafta that all financial institutions involved in the syndication process are attempting to facilitate the transaction on a "time-is-of-the-essence" basis.
However, Internafta has also informed GlobeTel that the lead bank requires additional time in order to secure an external expert opinion to verify both the feasibility of, and GlobeTel's ability to implement, the business plan for the Russian network. GlobeTel has been told that the bank and its external expert advisors are currently evaluating the business plan that was developed by GlobeTel as part of the commercial justification of the planned Russian network. This expanded version of the business plan was recently delivered to Internafta as required by the lead bank's project financing and due diligence process.
MORE of the same..no money now maybe later....another round about way to say it is delayed..they just want everyone to soak it up before make a rash desision.
-------------------- If all goes well then great, if not, make it work.
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posted
"Internafta has also informed GlobeTel that the lead bank requires additional time in order to secure an external expert opinion to verify both the feasibility of, and GlobeTel's ability to implement"
Translate....let me find a way out of this....
-------------------- If all goes well then great, if not, make it work.
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posted
I think they will lift the halt after the close today...give everyone time to relax and take it all in...so as to not sell in a panic.. it could still be good for longs but not for shorts...that way it might stop a panic sell off...
-------------------- If all goes well then great, if not, make it work.
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quote:Originally posted by George: "Internafta has also informed GlobeTel that the lead bank requires additional time in order to secure an external expert opinion to verify both the feasibility of, and GlobeTel's ability to implement"
quote:Originally posted by George: "Internafta has also informed GlobeTel that the lead bank requires additional time in order to secure an external expert opinion to verify both the feasibility of, and GlobeTel's ability to implement"
Translate....let me find a way out of this....
i totally disagree
You never know....If they were secure in what GTE could do they would not keep digging to findout they can not deliver...if you dig deep enough you can always find something you do not like...
It is kind of like "I am not so sure of myself now" Let me look some more...
This statement means flatout they just are not sure at this point that GTE can deliver...
-------------------- If all goes well then great, if not, make it work.
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posted
i think this shows the deal is on.. just changing terms, smaller payments.. still 600 mil. Theres too much at stake for both parties to just let this deal fail.
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posted
It is crazy...people do not know what to do with this news....is it good or is it bad?????
I guess it depends if you are long or short or shorting it....lot's of confusion...To me it is just another delay with no solid outcome at this point..should trade just like it was before the news...nothing has changed except it is delayed and payment stucture, if it goes through, is diffrent....
-------------------- If all goes well then great, if not, make it work.
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posted
good news...the deal is still on!!smaller payments according to the work achieved...makes sense to me...in contant talks..no dead line...i dont see where any of this is bad..
posted
i agree george about people not knowing.. i am even a bit confused myself... and why the long hault for this? going thru some of the message boards it really is about 50/50 as to whether its good or bad news.
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quote:Originally posted by jordanreed: good news...the deal is still on!!smaller payments according to the work achieved...makes sense to me...in contant talks..no dead line...i dont see where any of this is bad..
That is just it...the deal is still on as far as it was, but the problem is is it really going to happen? And it is just that...is it bad or is it good....depends on how you are looking at it...that is why they halted... put some doubt and thought through everyone...To me it is just another delay at this point....I hope so....but I would like to get back in at 1.70 also
-------------------- If all goes well then great, if not, make it work.
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posted
George, for future reference, you might want to read up on the Insider Trading & Securities Fraud Enforcement Act of 1988 (ITSFEA)...that is why some CEO's use a "T1" halt to trading... -------------------------------------------- In part: Notice of Insider Trading
The undersigned states and attests as follows:
I understand that should I acquire material* non-public corporate or market information whose dissemination would reasonably be expected to impact the value of related securities , it would be a violation of exchange Rules and Federal Securities Laws for me to capitalize on that information by trading in those related securities while such information remains material and non-public.
*Materiality:
For purposes of securities fraud, information is material if there is a substantial likelihood that, under all the circumstances, the information would have assumed actual significance in the deliberations of the reasonable shareholder. Omitted information is material if there is a substantial likelihood that the disclosure of the omitted fact would have been viewed by the reasonable investor as having significantly altered the total mix of information made available.
-------------------- "Whether you think that you can, or that you can't, you are usually right." - Henry Ford
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posted
Gee, I don't take such a dour view of the proceedings. After reading this, I certainly know quite a bit more about the whole financing process than I did before. What they want to do in Russia is no small feat.
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