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Non-Tech : Wit Capital - The way of the future? -- Ignore unavailable to you. Want to Upgrade?

To: briles who wrote (5661)	6/26/1999 12:50:00 PM
From: Kaliico	Read Replies (2) \| Respond to of 16809

<"Is there any rule an Underwriter has to allocate an allotment?"> Briles, thanks for the info. If i read those rules correctly, an underwriter could be listed as receiving 48,000 shares and only receive 1000. If they receive 1000 shares, they can not buy or sell that security on the open market, "ever", until they agree to distribute those shares? Does this mean the distribution lists we see posted on this board, are in reality not the actual distribution? I see Wit has lots of cash and cash equivelents, wonder if there is a detailed list out there somewhere. Last column is for 3/31/99. March 31, 1999 ----------------------------- Pro Forma Actual Pro Forma As Adjusted ------- --------- ----------- (In thousands) Balance Sheet Data: Cash and cash equivalents... $41,194 $66,094 $128,206 Working capital............. 41,902 66,186 128,298 Total assets................ 50,292 75,192 137,304 Stockholders' equity........ 47,500 71,784 133,896

To: briles who wrote (5661)	6/26/1999 1:42:00 PM
From: eDollar.com	Read Replies (1) \| Respond to of 16809

>>"Is there any rule an Underwriter has to allocate an allotment?" << This thing has been discussed again and again. Datek was an underwriter of GS but got zippo shares to distribute. An underwirter may write 1Million share, but he still might not be able to distribute even 1 share. Shares underwritten and shared distribute are totally 2 different issues and it is like apples and oranges. But the underwriters get commision for the risk they take (like Bearstearns and BS lost money in US Search), buy buing shares form the company and holding it in their inventory. 90% of WIT underwritten IPOs have had decent pops in the 10 days after IPO and hence WIT may have mage lot of money in underwriting fees and selling them. Thats why WITC is on fire. I expect them to report a BLOWOUT quarter and think this stock should break 40 soon. When the Internet IPO craze would be over then I would take profits on my WITC shares. Till then I am holding, definitely for the next quarter release.