Spectran (SPTR)...Speaking of White Hot Lately Message Board

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Technology Stocks : Spectran (SPTR)...Speaking of White Hot Lately

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To: Nilda Ovalles who wrote (439)	2/16/1997 12:33:00 AM
From: John D. White	of 1147

Nilda, They were unable to place as much stock as they planned and they had hoped to get a higher price than 19. That means two things: 1. They are now underfunded (if they truly needed the money). 2. There is weak demand for their stock at these levels. I would expect the stock to drop in price after any further support from the underwriters dissipates. Remember, this stock was below 5 just over a year ago (I know- that's when I bought it). They have had a good run and took advantage of it by kicking out a secondary to fund more expansion. If you are in for the long term, don't worry about it. It may not even be a tradeable move at this point. Just remember this the next time - secondary offerings often mean a short term top in a stock. If the offering goes well, the top usually occurs after the placement. If they are undersubscribed for the offering, the stock will start to falter before the secondary goes off. In my case, if I hear the words "secondary offering" I immediately start to look for an exit for at least half of my position. I let someone else have the watered down stock. All, of course IMHO. Let's give it a few months and see. John

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