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Microcap & Penny Stocks : ECNC: BETTING, INC. A WAGER ON NEW GAMING TECHNOLOGY
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To: Fli-by who wrote (2398)6/2/1999 6:29:00 PM
From: Tradewinds Tech   of 2909
 
Fli-by:

Why the price does what it does is often beyond me. I don't see any connection between the various SEC filings and the stock price.

As to the ".10 discount", that is a phrase that popped up in someone else's post earlier, without explanation. I assume that they were just referring to the SB2 talking about a .62 price, at a time that the current market price was .52, and coined the phrase ".10 discount" on the fly. I didn't see anything in any of BETT's filings that talked about a ".10 discount".

In general, a Secondary Offering goes into the market place below the current market price. This is a function of needing to get big investors to buy big blocks. The "market price" is established by day-to-day trading, which includes, and is at least in part influenced by us, little guys trading in small amounts; whereas the pricing in an IPO is driven primarily by brokers trying to get big investors to buy $100k worth of stock. That often (usually?) leads to a price a little below the current market price.

And, again, if the price is set in the face of a healthy demand, then the Secondary price won't be much below the market price.

It is theoretically possible for a Secondary to go into the market above the current market price; but that can only happen in the face of very strong demand, that is big compared to current float. I don't know how often that really happens.
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