From briefing.com -
Unlocked : Seasonal equity market malaise, rising interest rates, IPO inundation. Now we add "lock-up period" expiration to list of issues afflicting Internet stocks. Shares of Internet-based health care information services company, Healtheon Corp (HLTH 30 3/4 -8 3/16), filling late May gap as investors attempt to dodge supply unleashed by expiration of company's 180-day lock-period. According to document filed with the SEC, Healtheon is now registered to sale almost 17 million shares of common stock, potentially more than quadrupling the company's current 5 mln share float. Shares of VerticalNet Inc. (VERT 59 1/2 -5 1/4) and Prodigy Communications (PRGY 15 1/4 -13/16), which came public on the same day as Healtheon, also experiencing some lock-up related fall out today... Investor fears certainly warranted. Given that majority of recent IPOs are virtually illiquid and that many insiders/employees will be looking to "diversify" their portfolios by selling company stock at first opportunity, there is considerable downside risk to many of these issues. In fact, recent price action in some of January and late February IPOs suggests that insiders have already begun liquefying their holdings. After all, even with most Internet stocks down more than 50% from their highs, many of these deals still trading at substantial premium to IPO price. For example, although off 76% from 52-week high, Healtheon shares currently 284% above $8 IPO price. As an insider or affiliated party, do you take profits in shares that were in many cases purchased at less than $1 each, or do you let it all ride in hopes of a return to $126 high?... In the attached table, Briefing.com previews upcoming lock-up period expirations. - DS
Company IPO Date IPO Price Range Since IPO Current Price
Bottomline Technologies (EPAY) Feb. 12 $13 $14 - 98 $31
WebTrends Corp (WEBT) Feb. 19 $13 $22 - 84 $32 1/8
Vignette Corp. (VIGN) Feb. 19 $19 $37 1/4 - 111 3/4 $53
pcOrder.com (PCOR) Feb. 26 $21 $26 3/4 - 94 $29
RoweCom Inc. (ROWE) March 09 $16 $13 1/8 - 53 1/4 $14 3/4
Infosys Technologies (INFY) March 11 $34 $37 3/8 - 121 7/8 $83
FlashNet Communications (FLAS) March 16 $17 $15 - 51 1/2 $15 1/2
Cheap Tickets (CTIX) March 19 $15 $24 - 66 5/8 $43
iVillage (IVIL) March 19 $24 $28 - 130 $26 1/2
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