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Technology Stocks : Visual Data (VDAT)

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To: John T. Hardee who wrote (378)8/1/1999 12:17:00 PM
From: nord  Read Replies (1) of 405
 
The stock movement on Friday suggests that the secondary date is getting close to pricing. If the underwritters want to get their money for the secondary they will need to get the price to a reasonable (20+) level or the company will pull the secondary in favor of private placement money. Other things to remember are that the company is planning on moving from pink to Nasdaq listing and there must be a lot of news pending following the prolonged quiet period required by fed. regulations leading up to secondary. Mr. Selman has completed his West/East Coast institutional tour and rumor has it that the SPO is oversubscribed but if that is the case then smart money will move into stock before the pricing. I look at spread of warrants to common as an indicator. The spread is in $4+range ie $2 premium for warrants which suggests that smart money has started to accumulate warrants as more bang for the buck in warrants if a sizable uptick is coming....all IMO. The size of the advertising market was recently estimated at$3+B in the next couple years and VDAT is well positioned to get a nice slice of the pie.
Norden
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