Geo should fly. The question is: How soon will he be able to sell the IPO stock after it starts trading. If there are no restrictions, (some companies "request" you hold the stock for a week, two weeks, etc before they would "like" you to sell it....), you should be fine.
PS: My foray into IPO's netted me a great winner: QWST. Triple in a year.
PPS: On Micron (is today the day to enter the short?)
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MICRON TECHNOLOGY (MU) 34 1/4.Micron (MU) shares have been rallying strongly since late June. Since then, the previous downtrend has reversed and the stock has risen from 21 to over 35, a gain of 67% off the lows. This was based on signs that pricing in the DRAM market, which MU makes, was no longer deteriorating. There was even hope that DRAM prices might go up. This morning, an article in Barron's throws cold water on that argument. The article quotes an analyst from well-respected Dataquest as saying that pricing in the DRAM market remains "miserable." He argues that signs of improved pricing in the 16-megabyte 100 megahertz market reflect a lack of competition from MU competitors that will not last. He says that overcapacity in the DRAM market will continue until at least 2000. The article quotes a Salomon analyst as saying essentially the same thing. In fact, the rally in MU and other semiconductor shares has been based largely on faith, and not so much on hard evidence that changes in the marketplace will translate into profit growth. The Barron's article today will test investors' convictions as to how far they want to push this stock before the financials really do turn around. The stock has a lot of upward momentum right now, but momentum in MU has been known to work both ways. |
