STOCK ISNT WORTH MORE THAN 5 to 7 bucks!!!!
MANNATECH INC (MTEX) 37 1/2 +15. Shares of Coppell, TX-based Mannatech Inc came out of nowhere yesterday to take over the top spot on the Nasdaq top percentage gainers list. The stock finished the session up 181% from its initial offering price, a stock market debut that any Internet company would be proud of. Only problem is that Mannatech Inc. is nothing more than your run-of-the-mill network marketing company. Nevertheless, someone out there is obviously impressed enough with the company to purchase shares at as much as 437% above the IPO price. These investors have pushed the stock as much as 91% higher this morning, on volume of 403,000 (intraday range 27 1/2 to 43). So what gives? It couldn't be the prestige of the underwriting team that is helping lift the shares: according to company's S-1/A filing with the SEC, Mannatech didn't use an underwriter for the offering. In fact, the company says that it arbitrarily determined the offering price. That insider holdings made up a substantial portion of the initial shares sold is certainly nothing to be bullish about. Briefing.com's Explanation: Mannatech is a network marketing company with more than 226,000 active Associates. (Under Mannatech's definition an active Associate is someone who has purchased product from the company within the last 12 months). Although we had never heard of Mannatech before yesterday, it's not difficult to extrapolate who is running these shares up. At the end of the day, Mannatech insiders may not only make a killing selling to its army of "Associates" everything from muscle development products to chewable gummi-bear nutritional supplements, but they could have the opportunity to unload their shares on these followers at prices that this stock is never likely to see again. |
