Seac - Seachange New IPO Message Board

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Technology Stocks : Seac - Seachange New IPO

SEAC 3.350

-4.6%

Oct 22 10:15 AM EST

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To: WaveSeeker who wrote (7)	11/21/1996 2:32:00 PM
From: Don W Stone	of 431

Mark, Just how big is the market for "digital video ad insertion software" ? The 'Corporate Fact Sheet" says about SEAC Installations:1) 70+% share of digital ad insertion market, 2)100+cities/location worldwide, 3) 3500+channels. So that raises three questions right away in my mind. 1)70% of what? 2)out of how many potential "cities/locations" worldwide? 3)potential channels? Stock looks to be expensive here as you say but on what basis? very hi P/E? P/S? PEG? Rate of growth they can sustain? To me it is to early to answer the questions on P/E, P/S, PEG, but it isn't to early to base a decision based on some known facts as to the potential of the market they seem to be penetrating with what appears to be very good success. At this point the first day of trading after the IPO would indicate to me that the stock was fairly priced in the hi teens. Otherwise this stock would have taken off right away. With the team of underwriters they had, you can bet the word certainly got out and SEAC wasn't one of those , way over subscribed IPO's apparently. Appears to me the timing on going public was timed for a high point in company activity(i.e. just prior to announcing 3rd Q results) to maximize the return to SEAC during the offering. They obviously wanted some good news to come out during the so called "quiet period" to help support the stock price. The " quiet period" ends 12/5/96 and it will be interesting to see what the underwriters have to say. I am not expecting much more than what is already known but jusyt maybe some answers to my questions will show up then, and speculation will set in and give the stock a shot upwards. In case you couldn't guess, I am on the sidelines in serious contemplation. Right now I view SEAC as a situation that could go either way but my inclination is it will back off abit before going higher and then only on news. :-}

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