GEOC ( GeoTel ) Message Board

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Technology Stocks : GEOC ( GeoTel )

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To: JOHN CHEN who wrote ()	1/8/1997 2:47:00 PM
From: Hudson Gilmer	of 61

Great Prospects, Technical Danger. For those of you not familiar with this company or the market, they sell an "intelligent call router" which is a fancy way of saying that they tell networks where to route calls based on what's happening at the sites where calls are being handled. They sell this system to companies with large call centres such as Airlines, software and hardware companies and shop-by-phone outfits. Geotel's product is unique because it solves the problem of managing high volumes of incoming calls and distributing them evenly across multiple answering sites based on analysing the realtime status of each centre (wait times, volumes, etc..) The Geotel box then turns the 800 Service provider's network into a dumb client and gives it instructions on how to route calls. The big trendsetting customers have already voted for Geotel with their feet, and Geotel has wisely partnered with Aspect and Melita who are leaders in the premise equipment side. I firmly believe that this is the future of call centres, and that Geotel will be extremely successful. Despite all of this I haven't bought any stock yet for reasons that have nothing to do with the company's prospects. If you analyse their IPO filing, you will see that less than 20% of the stock was actually made available in the IPO. The remainder sits in the hands of venture capitalist firms who stand to make 5-15 times their investment based on today's stock price, but are restricted by the SEC from cashing out until 180 days after the IPO (early Dec.). As a result there are currently a large number of buyers chasing a small amount of stock. I think there is a risk that the stock will take a hit when the locked up stock is dumped on the market. In making this observation, I caution you that I am new to the world of IPOs and came to these conclusions based on what may be an incomplete understanding of all the dynamics involved. I would appreciate any comments or corrections from someone with greater IPO experience.

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