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Technology Stocks : InfoSpace (INSP): Where GNET went!
INSP 119.16-8.7%Dec 15 3:59 PM EST
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To: Sarkie who wrote (9690)7/18/1999 9:34:00 PM
From: RTev  Read Replies (1) of 28311
 
The problem seems to be addressed on this thread on a regular basis, but I have yet to see the answers to the above questions. If in fact, additional coverage is the answer, how do we get it?

The best explanation I've seen (and I believe I've seen it here) is that the lack of coverage is a kind of a "punishment" for GNET's low-budget IPO way back when. Most of the analysts work for big Wall Street brokerages that benefit greatly from traditional IPOs handled by a select group of investment bankers. The big analysts drink and do lunch (and, umm... more) with the same group of people who see it as their right to handle the IPO of any company that wants to make it. They also work for firms whose blue-chip clients get to buy into IPO shares at or near offering price.

GNET avoided that process and has become a major internet player nonetheless. The big brokerages wouldn't want to see others follow their lead. One way to discourage others from emulating GNET in doing a quiet regional IPO is to be able to say to a potential IPO client, "But look at the coverage of GNET. Years after their IPO, only the regionals are covering them. You wouldn't want to have that happen to you, would you?"

They will have made their point eventually, and will be able to institute coverage.
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