BLUE HP watching TWTI with interest . . .
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Commentary : Upcoming Lockup Expirations
Gauging Impact of Lockup Expiration Is No Exact Science
By Michael Falbo
Special to TheStreet.com
Originally posted at 12:08 PM ET 8/1/01 on RealMoney.com
On Monday, the first trading day after Exact Sciences' (EXAS:Nasdaq) lockup expiration, the stock got hit hard by high trading volume. The stock was down more than 13% on the day, closing at $9.20. Insiders were ready to sell some shares.
On Tuesday, the stock sank again on high volume and closed at $8.06, down more than 12%. The sellers just kept coming, and the shorts kept making money. Hey, sometimes a negative can equal a positive!
Gauging the impact of a lockup expiration can be very difficult, but think about how you'd feel locked into a stock for six months. Personally, I'd sell. Maybe I wouldn't sell all of it, but enough to reduce my exposure. Most lockup expirations have a negative effect on the stock, especially in erratic times.
Here's the list. For more on lockups and why they matter, check out Ben Holmes' primer on the subject. A more recent take on Lockups appears here.
Lockup End Deal Name Released Outstanding
8/7/01 OIL STATES INTERNATIONAL (OIS:NYSE) 37,900,000 48,270,431
Merrill Lynch SEC Filings 78.52%* News
8/8/01 THIRD WAVE TECHNOLOGIES INC (TWTI:Nasdaq) 30,076,946 38,313,746
Lehman Brothers SEC Filings 78.50%* News
Source ipoPros.com * Released shares as a percentage of outstanding. <<
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The 8th is also when BDAL reports. Liking my timing on that one today!
Tempted by ARNA, anyone have a take?
Cheers, Tuck |
