I'm not quite sure by what you mean "what is wrong?"
If you are asking about the price action recently, you can look at the chart and surmise that the stock went down on relatively smaller volume after the "secondary" was announced. Furthermore yesterday you had what I call "capukulation" which is a combo of capitulation to the point of the holders "puking" their positions and that is why the stock rebounded hard off the 12 level. (Anecdotally, I spoke with some ex-colleagues who had a couple of customers finish their sell orders, and because they were down to about 100,000 shares each respectively, and that being such a small portion of their overall portfolios, they don't really care at what price they sell...and that is what creates opportunities). So once that cleared up and ONSL announced their 10 millionth bid with VerticalNet being recommended by a number of brokerages took EGGS up and we saw some follow through today.
As for the price erosion from the 16+ range, I attribute that to short-term profit taking.
As for the secondary, with the company currently on the road...I spoke to a buddy of mine at one of the underwriters who took company management to his customers and he said he was impressed with both Orban and the CFO.
The point to remember is that now you are on the verge of introducing EGGS management to future holders of the stock...mutual funds, hedge funds, and small cap "index" funds (like DFA: Dimensional Fund Advisors) not to mention the retail sales force of Prudential...how many individual investors want to get a hold of a new internet recommendation with a stock trading in the teens and not the hundreds?
I would suspect the offering gets done on Thursday night and starts trading on Friday.
As for what is "wrong," I'm not really sure what you are asking but I hope that provides you and others with some "salient" information and not a bunch of hype, as I read on this thread most of the time |
