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Technology Stocks : UCOMA UnitedGlobalCom

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To: NASDBULL who wrote (231)2/12/1999 1:13:00 AM
From: steve host  Read Replies (1) of 489
 
run up was taken down a bit during the Nasdaq dumping -scared out the weak hands. FYI the others did not go up either of the 2 days before the IPO -- this did. I cant understand why people only look at the "parent/spinoff situation" and not look at other differences.

FYI IMHO:

IMHO (difficult to predict exactly because this situation has NOT arisen recently and IS somewhat unique):

Large brokerage houses will definitly buy on the mkt in Europe for their clients who wanted a part of the IPO but could not get it-- so as to get a jump start on the US which will cause Europe to move higher than it would have if no NY trading was to begin. Then in NY (where the real fireworks will happen - 7mil float) you will have the retailers and internet brokerage customers gearing to buy here based on what happened overseas. They will realize it may be difficult to get the IPO at a decent price and will be unsure when it exactly starts trading etc there will probably be some delay resulting in a good portion of that base to buy UIHIA based on news reports indicating that it will own 63% and has an established symbol has a quote from today and people will do the same numbers we have been doing based on today's close. Then throw in some large purchasers who like what they see in Europe and want to take advantage of the discount UIHIA provides - UIHIA starts moving up premarket substantially and then some.

You are lucky if UIHIA starts premarket at 65 (it moved up 10 pts on a day without news) and moves up from there before the mkt opens. Once it opens it trades in tandem with UPC. The 2x1 ratio provides amazing upside potential. There are people with a lot of cash waiting to see this one.

WHy do you think UIHIA who structured this offering decided to have it open first in Amsterdam a full 3hrs before US - ponder that for the evening/morning as you decide whether to cover at the open. This much I am pretty sure about, it will go up and not look back.

This stock is worth almost immediatly somwhere in excess of 75,but probably much much more. where exactly I will tell you tomorrow, but probably somwhere in triple digits.

Tomorrow is = IPO for UIHIA
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