Hi Jeff,
Thanks for your warm welcome and your post on RMBS.
Re. the lock-up shares, I believe most people who have owned the stock--myself included--are fully aware of the potential "floodgate" effect which will undoubtedly rattle the dynamics of this stock come November.
However, looking at the situation with CIEN, I am greatly encouraged that the effect might not be nearly as devastating as some people would anticipate. As you may know, when CIEN's lock-up expired on August 7, more than 50 millions shares were set free. Yet, after six week's back-n-fill, the stock has resumed its normal upward course. If I have to guess, I would say that the demand-supply situation with RMBS is a lot more favorable than Ciena.
A recent WSJ article (mid September) also alluded to the mild exodus effect--much to their surprise. (I will post the article after I catch my breath a little.)
As to myself, my entry points were $12 (IPO price), $29-30 (mostly), $41 and 10% at $51, thus the pressure has not been felt by me.
Regards,
Ibexx |
