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Technology Stocks : Compaq

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To: Captain Jack who wrote (58780)4/19/1999 6:01:00 PM
From: rupert1  Read Replies (2) of 97611
 
Cpn: When I said he could go ahead with AV - it will take at least 60 days to clear SEC approval, probably 90 days for such a large monster. They have not even begun that process yet. It starts with a filing of the prospectus.

I suspect that the prospectus is not ready and that they were waiting (a) for some more traffic and revenue to be generated and (b) to sign up a content provider or other bits and pieces. One of the decisions Rosen will have to make is if they are going to wait until they have the perfect structure or are they going to go in on a wing and a prayer on the basis that time is of the essence, and the internut market is not hyper-cricitacl and the building up of AV can be done afterwards with the IPO cash and with the newly inflated AV shares.

I'm somewhere in the middle. I would file at the end of May, no matter what. I would aim to float it in October.

Elwood, a succesful AV float will give CPQ at least $5-7 dollars a share boost, however temporary.
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