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

To: bh who wrote (5668)	6/26/1999 2:29:00 PM
From: ChopChop99	Respond to of 16809

I think they pass a few shares around, even on hot deals, because... ...they know there are gonna be not-so-hot deals that they need help with. And they know that the other underwriters will also have hot deals that they'd like to get a piece of. I had a conversation one time with a guy who owned a movie theater, who had previously spent years working for one of the companies that actually distributes the films to theaters across the country. In retrospect, the movie distribution business sounds a lot like the IPO allocation business. He said that the companies would usually help each other out when it was time to distribute the dogs, but they also expected some tidbits of the hot ones. The cool part of the story was about one film that his company wound up distributing, and it was such a terrible dog with such a poor forecast amongst the distributors that very few of his competitive colleagues would agree to take any of the copies and they wound up being stuck with virtually the whole allocation. The film was called Star Wars. Don't know if he was telling a true story or not, but it sure was cool.