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Technology Stocks : 724 Solutions (NASD: SVNX, TSE:SVN)
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To: coachbobknight who wrote (242)7/8/2000 10:05:04 PM
From: coachbobknight  Read Replies (1) of 337
 
thoughts on the lock-up...

jlbcoleman, the subject of lock-up expiration has been discussed several times, as recently as a week or two ago. In a normal situation where shares are broadly held, one should be concerned with the potential for a sudden flood of shares on to the market. This ones a little different. The current float is 6 million shares (5 in US 1 in Canada) which is pretty small and why you don't see heavy volume. The total float is about 36 million. Lock up expires on about the 25th or 27th but I don't believe it will be an issue of concern primarily because this company is closely held by several owners and the CEO. The CEO doesn't need the money, he sold his previous company, Footprint Software to IBM for about $50 million. The FI owners won't sell because that would alter the equity position they hold and subsequently create an imbalance in the governance structure of the company (Board). We will see some additional shares but not an overwhelming amount, so the increase in actual market float could benefit investors like us since the volume should increase. Also from IPO to end of lock up is also referred to as the "quiet period" where most analyst coverage would come from those involved directly or indirectly in the underwriting of the initial share float. After this day we should begin to see more coverage from analysts. Hope this helps and if you want to see the relative equity positions you can check the last SEC filing. Regards eh, IAC
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