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Non-Tech : Knight/Trimark Group, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Joseph Silent who wrote (1858)	6/28/1999 1:07:00 AM
From: Lee Martin	Read Replies (3) \| Respond to of 10027

Thread: IBD has NITE at the top of its list of the 200 best stocks to own: investors.com I loaded the boat on NITE at 48 on the day the last CPI came out. Last Mon it hit 59 and I've been kicking myself for not selling it. So I was glad to see that IBD also thinks NITE is the best stock to buy now. Does anyone think IBD is wrong? I guess it all depends on interest rates. If the market likes what the Fed does Tues. we will start a rally that should last through earnings season and NITE will probably go parabolic and IBD and I will look smart. If the market doesn't like what the Fed does, we continue to grind lower with the nets leading the way down. So what's going to happen next week, rally or continued selloff? Regards, Lee

To: Joseph Silent who wrote (1858)	6/28/1999 10:14:00 AM
From: Patherzen	Respond to of 10027

Thanks to Joseph for finding the RB post on Lock-up Shares... By: Spiderman Reply To: None Saturday, 26 Jun 1999 at 9:05 PM EDT Post # of 7085 A quick note regarding the locked up stock.: This stock is subject to a law refereed to as rule 144. Rule 144 comes into play with regards to two situations: 1. Stock that was purchased in a private placement/unregistered. This would be true of stock purchased by early investors prior to nite going public. Currently, there is a great deal of NITE stock of this form, including almost all the stock held by management and the early institutional investors, such as AMTD and SWS. 2. Stock owned by an affiliate of the company. An affiliate is typically a company insider with access to financial and strategic info (top management, their assistants and board members) or someone/entity that owns more than 5% of the outstanding stock (amtd). Rule 144 says that if you acquire stock that falls into category 1 above, you cannot sell it in the market for one year. This period is about to expire, so some stock may come into the market, however it is usually not significant. I really think that it will be minimal in the case of nite for several reasons. a. Nite management will not sell any of their stock. They do not want to send a bearish signal to the market. If they need cash or wish to diversify, they will use other monitizing/diversification strategies such as borrowing against the stock, or collaring the stock with options to lock in gains, or to place their stock in an exchange fund. (exchange fund is where rich people pull their stocks together and share in the overall performance without selling their individual securities - diversifying while avoiding capital gains). b. The institutions will not sell huge portions either. They are all in synergistic businesses and want to maintain an interest/voice at nite for strategic reasons. If they wish to raise cash, they are more likely to float some kind of convertible debt instrument like SWS did recently with its DARTS. I discussed this issue about two weeks ago with an analyst at Pain Webber who follows NITE. He had similar thoughts, believing that the end of the lockout period would not cause a flood of nite stock into the market One more point. If an individual is an affiliate as defined above, they are also subject to volume restrictions. I do not know the details but basically they are only permitted to sell X amount of stock each quarter. This number is based on the amount of outstanding shares and the average trading volume for some period of time. I will be happy to find the details of the formula and post if anyone is interested. This means however that any sales by an affiliate are probably not significant enough to cause catastrophic price movements by themselves. One final point. I don't know the exact date that the one year is up but I think it is on or around July 13. This date is important because it is also very close to earnings release, which means that NITE management and its board will be in a blackout period (they cannot buy or sell NITE stock during the blackout period). Therefore, the date for NITE management stock freeing up is essentially several days after earnings release, not on the anniversary of the public offering as many have stated. IMHO, the end of the lockup period is insignificant and is already priced in the stock. Hope this make sense and helps with everybody's understanding this issue. Spiderman