Net Perceptions, Inc. (NETP) Message Board

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Technology Stocks : Net Perceptions, Inc. (NETP)

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To: Raj Ramaswamy who wrote (2746)	8/18/2000 11:31:24 AM
From: rupert1	Read Replies (1) of 2908

Raj: Good luck with your investment! The following is an excerpt from the Robertson Stephens report. It is not about NETP and NETP does not have any lock-up releases in place, but is still relevant. It suggests a source of selling about this time of the year. ___________________________ eNetwork Update - Michael Graham - michael@rsco.com SEPTEMBER RALLY? BEWARE OF LOCKUP RELEASES Many Internet stocks that are down and out probably deserve to be, in our view. We believe, however, that several are due for a recovery from oversold lows. Timing remains the central question as many investors wait for companies to turn the corner to profitability (with models projecting 50%-100% earnings growth thereafter). We wonder if September will offer the opportunity for selected well-positioned stocks to rally, given the depths of inactivity witnessed in the summer. One potential drag could be the expiration of underwriters' share lockup agreements, creating more supply than the market can easily accommodate. Robertson Stephens' Capital Markets division estimates that $52 billion worth of lockup releases are due in August and $66 billion in September-up from $25 billion in July. This is obviously a result of the heavy February-March financing cycle. A large portion of this volume will come from Internet stocks. Prices are depressed but still up substantially from the cost basis of most early private investors. At a minimum, we suspect the expectation of selling may well mute any September rally. In October, however, the lockup release schedule slows considerably, suggesting to us a rosier Q4 outlook.

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