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Technology Stocks : BACKDOOR, an IPO> IDTC,BRKT,BNYN,KLOC,NAVR

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To: Glenn Petersen who wrote (673)	5/10/1999 2:28:00 PM
From: American Spirit	Read Replies (1) of 954

Bricks and mortar may not be glamorous but it provides BKS steady income and something AMAZON doesn't have, that is places you can go to return books. Also each store is like a giant ad for BKS. Borders has fallen because they didn't make themselves an on-line force, and their CEO was forced out, further depressing the stock. Brick and mortar also protects the stock's downside in the event of a net downdraft. AMAZON has no such protection. It is now my suspicion that the price of BKS is being held down by the underwriters in order to mute any trader enthusiasm. They are quietly putting a lid on things and meanwhile accumulating. This price-control results in bearish posts like yours from doubters who see no hope of any sharp upward movement, but nomatter what games are being played, the stock will indeed trade significantly higher very soon because BNBN has only been partially priced into BKS. Also AOL and Amazon are recovering which is bullish for BKS. Why is BKS down today and who on earth could be selling? Figure it out. It doesn't make any sense which makes sense if you understand the underwriters' motives. The only individual investors who would sell are those frightened off by the lack of movement so far. But why isn't it moving 1-2 weeks before the IPO? A trader on YAHOO with Level 2 noticed the reason, because every time BKS upticks it gets bid immediately back down again by "somebody". It is being tightly controlled. But at a certain point that control will turn into buying. Be patient and understand how they are trying to keep BKS and BNBN from being volotile trading stocks. They want nice sold appreciation, not a frenzy. They will allow the price to rise soon. Perhaps it won't go to 50-60, maybe only 40-45. But greater appreciation is certainly their longer term goal. The want stability which I guess is fine with me so long as the overall direction is UP and I don't have to lose any sleep over it. Patience and more patience. The good news is coming very soon. Meanwhile the road show is happening and parcels are being doled out to more conservative investment groups. Unlike other IPO backdoors, BKS will go up but won't come back down much. In fact I can see this as a possible hold right through the IPO. Of course there will be some volotility but likely a new high base around 40 or so will probably be formed, from which to steadily grow as they challenge AMAZON to become the world's #1 on-line and real-world bookseller. BMG also owns a big piece so that probably means CD's and more as well. BNBN seeks to BECOME the next Amazon without the extreme volotility. All of this makes BKS a safe buy at these levels. Prudential's target of 44 is modest and attainable short-term. Not as exciting as some but pretty damn safe. Comments anyone?

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