Interesting Post from Yahoo.
plxt price pressures
by: halasell 10/24/1999 4:09 pm EDT
Msg: 487 of 519
I attribute the last two big price dips to lockup expiration.
(As supporting documentation, I'll post an excerpt from the
prospectus).
At IPO, there were 3.3M shares float. Insiders holding the
other 18.3M shares were prohibited from selling them.
On Sep 3, 3.9M shares became available for selling, increasing
float by more than 100%!
On Oct 3, 14.4M additional shares became available for selling,
increasing float by 200%!
There was no impediment to BUYING prior to either lockup expiration.
Anyone, insider or outsider, could buy at market. However, those
holding lockup shares could not sell until lockup expiration,
bringing ONLY SELLING PRESSURE at lockup expiration.
Since the two biggest price dips occurred near the lockup releases,
it does not seem unreasonable to claim causal links -- both
anticipatory and reactive.
It surprised me to see the price struggle back to 25 in September,
given that there was an even bigger kicker (200% increase in float)
coming. Now, after the last lockup expiration, I interpret
September's strength as a positive indicator of PLXT's immediate
future.
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