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Technology Stocks : Juniper Networks - JNPR

JNPR 39.95

0.0%

Jul 2 5:00 PM EST

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To: Wes Stevens who wrote (743)	8/19/1999 7:54:00 PM
From: Wizard	Read Replies (2) of 3350

>>You need to take a better look at the prospectus: Wes, here is the math so you can learn how this works. The ipo was priced at $34 and was done near the end of June. IPO's raise cash for the company, in this case 2mm shares at $34 goes to Juniper (less the underwriter proceeds of 7%). (2mm) * ($34*(1-.07)) = $63mm. There were selling stockholders for another 2.8mm so Juniper doesn't get that cash, the stockholders do. 2mm + 2.8mm = 4.8mm total available shares to the public (plus a few hundred thousand that are overalloted but don't worry about that). They didn't sell the whole company to the public, just 4.8mm of the roughly 50mm total shares outstanding. At $200, there is roughly $1b of market value that is currently available to buy. That is not even enough to let Janus take a full position. Then you have Fidelity, Putnam, T Rowe, Franklin, AIM, PBHG and all the other growth funds deciding how long can they wait until they have to buy this key supplier of internet infrastructure. 4.8mm just ain't enough.

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