IATV-ACTV Digital Convergence Software-HyperTV Message Board

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Technology Stocks : IATV-ACTV Digital Convergence Software-HyperTV

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To: Robert Cohen who wrote (2643)	4/24/1999 4:46:00 PM
From: Mike Fredericks	Read Replies (2) of 13157

When a company announces a secondary initially the stock goes down then it typically goes to new highs from the exposure. IOM - I bought in Summer of 1996 shortly after they made a secondary offering at around $30 or so if I remember right (split adjusted = $15). The stock had fallen a couple bucks below the secondary price and I picked up some stock figuring that it was oversold. Stock fell like a brick and I got out. Now it's at 5 1/4. Secondary's may be good in your experience, because in theory the company is going to use the money to undertake some project/venture that will end up being more profitable. However financing via debt is cheaper than financing via equity, and secondary's make me nervous. Plus we all would have gotten diluted. Ok, so we did get diluted when LBTY buys shares since the company issues more shares in order to fill the order, but I'd rather have that private transaction than a public transaction where the shares go to people who ordinarily would have had to buy on the open market and keep the price up. -Mike

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