What about the lockup expiry in August? That's a lot of shares when/if they hit the market.
Got this from RB. (I'm quite sure the 'average daily # of shares traded' in that IPOlockup link at the bottom is wrong).
FrankW
ragingbull.lycos.com
RSTN some startlin info I found out from a page
community.metamarkets.com
RSTN
By hunkged (rating 2.5) on 00:19 05.26.01
Hi I have got the following information from the Prospectus from riverstone
network.
It says Cabletron plans to dsitribute 92 mil shares to the open market once the
spinoff is
complete. And
also Cabletron is on held by index funds such as those on S&P 500 index. The
index funds
will be forced
to sell RSTN if CS is on the index fund while RSTN is not.
My question are:
1. how can I know when CS will be able to distribute the 92 mil shares to the
public? Is it
after the unlock
date?
2. since RSTN is an IPO I doubt it is on index fund already. how will I know when
the index
managers need
to distribute RSTN?
3. How many shares do they need to sell? Why do they need to distribute RSTN?
To keep
the index
wieghting unchanged?
Would greatly appreciate if someon can help on this?
Regards
Re: RSTN
By Jeff Lin (rating 3.65) on 10:33 05.30.01
Hunkged,
Thanks for your questions.
1. Last I heard from RSTN's management, CS is planning to distribute RSTN
shares "later
this year." They
are on the road as we speak, meeting with major shareholders, getting them up
to speed
on and
comfortable with the RSTN story. They are hoping the more CS shareholders
know about
RSTN, the more
likely they will hold RSTN once it is distributed. I think they are shooting for a
Sept/October time frame,
which would be after the unlock date: RSTN IPO'ed on 2/16, so it should unlock
6 months
after on 8/16.
2. S&P 500 index managers will sell as soon as they receive RSTN shares
because they can
only hold S&P
500 names.
3. At last count, CS made up 0.0322% of the S&P 500's total market cap ($3.61
billion for
CS vs $11.203
trillion for the S&P). This translates to index funds holding around 17 million CS
shares. We
still don't know
what the final distribution ratio will be, but we can extrapolate. Since RSTN's
market cap
makes up around
55.5% of CS' market cap, CS shareholders will get rougly 55 shares of RSTN for
every 100
shares of CS
they hold. So Index funds will receive and sell around 9.4 million shares of
RSTN, or a little
over 10% of the
92 million shares.
Again, indexers will sell after the unlock period, so their impact won't be as bad.
But 9.4
million shares
hitting the market certainly won't be good for a thin stock such as RSTN. A
possibility is
that Indexers may
simply transfer their RSTN shares to a non-index fund in their fund family.
Hope that helps.
---------------
Jeff Lin
ipolockup.com./companyinfo.cfm?ticker=rstn
good skillz and good investin to YA |
