Hi devkn,
My name is Garry Betty and I am the President and CEO of EarthLink. The information provided to you by Grandy is patently incorrect. Almost all of the stock that EarthLink sold on the public market, the 2,000,000 shares plus 300,000 shares of the overallotment option, were sold to institutional investors. In fact, Invemed, our investment banker (run by Ken Langone .. who is on the board and was one of the original founders of Home Depot and was the man who took EDS public) refused to accept orders for over 500K shares of stock target to be sold to the "public" or retail.
Further, as our registration statement points out, all of the existing EarthLink shareholders signed a lock agreement to not sell any stock for one year from the offering date. EarthLink's stock will probably have sudden swings as their is not much "float" on our stock. Someone buying or selling even a small block of stock, 10,000 shares, can cause our stock to move either way several points.
The stock ran up due to a large institutional investor's desire to accumulate more of our stock and it has similarly declined on relatively light trading. There was only one "large" block sold over the past two weeks and that was for 69,000 shares. The figures that NASDAQ reports includes both the buy and sell ... so if 200,000 shares traded in a give day only 100,000 share or possibly less traded hands.
I hope this clarifies your post. |
