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Technology Stocks : Creative Computers(MALL)

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To: puborectalis who wrote (1157)12/7/1998 8:11:00 AM
From: Rajiv  Read Replies (1) of 1634
 
There is a distinguishing feature between UBID and other internet IPOs. Other IPOs have a 6 month lockup period for the remaining shares. Though a similar clause exists for UBID (MALL cannot sell the shares that it owns), the MALL insiders are free to sell their MALL shares.

Since MALL is a proxy for UBID, I will guess that as the supply of MALL paper increases - the MALL shares will be trading at a significant discount to the theoretical value based on UBID's share price. If this happens, the demand for UBID will go down - investors can buy the proxy MALL at a discount.

Regards.
Rajiv
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