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Technology Stocks : GEOC ( GeoTel )

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To: Hudson Gilmer who wrote (1)1/8/1997 3:35:00 PM
From: CCD   of 61
 
Hudson, Thanks for the great background info on GEOC...
The experience that I have had with IPOs tells me that the long term players(+6 mos) are not the ones pushing the price up inside the lockup period. The short term players are the ones that are squeezing this stock based on the solid fundamentals that you described. Experience also tells me that a good stock will not be even close in price to its IPO price when the lockup period ends--it will be much higher.

You have uncovered a very important aspect of an IPO's trading behavior, but I think that you are a bit early in the process to worry about the lockup period. However, the expiration of the lockup period is generally a great time to buy a stock on weakness. MARK THE SIX MONTHS EXPIRATION DATE ON YOUR CALENDAR. IT MAY MAKE YOU MONEY IN THE FUTURE. In addition, it is good to call the company and find out how long the VCs have been holding the investment. If it is a short period of time(<2yrs) and the company has great growth prospects, the expiration of the lockup may not have much of an effect. If it is a long period of time and the company is mediocre, WATCH OUT BELOW!
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