E*TRADE IPO ALERT THREAD Message Board

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Technology Stocks : E*TRADE IPO ALERT THREAD

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To: eDollar.com who wrote (13776)	11/24/1999 2:26:00 PM
From: Dean N. Browning	Read Replies (2) of 15145

I don't buy the argument that UW's do "solid research" and that no flipping should be the rule. Using DIGI as an example, it sure looks like CSFE, H&Q, etc. really did a solid research job. Issue price for 4.5 M shares of DIGI was $15, it opened at $34 and closed at $55 on volume of 11.5M. A "solid research" job would have put the issue closer to the open not off by 130%. And to take the argument one step further, lets say that those 4.5M DIGI shares were placed in no flip accounts. What do you think the opening would have been? Would this approach have served those investors that wanted DIGI but didn't receive an allocation? Again, my point is that flipping allows the individual investor the option of keeping an IPO or selling to someone who does want the stock at a market clearing price. I liked DIGI at 15 but why should I or any individual buyer be forced to hold onto a company with only 80 some employees, 1999 sales of less than $2M and a market cap of almost $1.3B ? I certainly would not buy DIGI at $55 so why should I be forced to hold onto it at that level when someone is willing to give me $55 for my shares?

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