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Technology Stocks : Steven M. Samblis answers IPO questions direct

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To: Nanda who wrote (1)1/12/1997 11:27:00 PM
From: Steven M. Samblis   of 127
 
Nanda,

This is an interesting industry but holds a problem due to its scale and identity. I mean this from the stance of the fact that even though this is an important industry, it is not one that is widely followed by the brokerage world. You may find winners in this area. The problem is that unless investors are looking for this particular type of IPO (In this Industry group) they most likely will not proceed to investigate one that comes up. As a rule of thumb for an IPO to be a winner "in general" it must have media appeal (the press has to want to write about it so people will hear about it.), and it needs a good Underwriter and Selling group (who will suport it in the secondary market). Remember If people don't buy an IPO the price will not go up. The reality of the market is that nothing else means anything, only buying moves stock. If you can identify a stock that everyone will want, then it will be a winner.
Thanks, I know this may not be the direct answer your looking for but I hope that it helps.
Steve
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