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Technology Stocks : Aeroflex (ARX)
ARX 12.62+4.7%Nov 7 9:30 AM EST

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To: scott who wrote (392)2/25/1998 2:03:00 AM
From: Kerry Lee  Read Replies (1) of 586
 
Scott you wrote:

<<I predict that ARX stock price will be soft until the market judges
how well management puts the approximately $15M to work after debt is paid off. I
know that I'll be looking to pick up some shares again in ARX after having made a nice
profit earlier.>>

1. Please define "soft". What is your predicted trading range over what time period?

2. If memory serves me correct, this offering is for less shares than the previously cancelled offerring ( 2.5 million now vs 3.0 million before)

3. Look at the recent stock price performance of recent secondary offerings, eg. SEEK, AMCC. It is interesting that it didn't take long for these stocks to head UP shortly after the announcements.

4. This is the Wall St games the pros play...BUY some analyst coverage via underwriting fees, sell the stock to Institutions for $9-11, then make everyone look good by making a series of announcements after the institutions have bought in, reiterate/strengthen some Strong BUY ratings, then tell their retail salesforces to flog it to John Q Public Retail investor to bid it up later to $12-15.This is just an example of how Wall St works and not necessarily what I predict will happen going forward with ARX.
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