Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: alias who wrote (36401)	7/21/1999 12:55:00 PM
From: JGoren	Read Replies (2) \| Respond to of 152472

nope. the funds based on the sp500 index have to buy qcom shares in its weighted percentage to all the stocks on the index. the shares will be sold directly to the funds as in any underwritten offering (although the underwriters can sell on the nasdaq). the funds will not dump them on the market but keep the shares in their portfolios for some period of time. the float (those shares actually trading) should not be increased significantly in the near term. the downward correction that is presently occurring today, however, may negatively impact pricing of the offer. if the stock price were continuing to increase as it has for the past week, the offering could be priced at the close the night before or a little above--with fair assurance the surge would continue. now, with a several point downward correction, it would indicate pricing at the close the night before or a little below. the underwriters could go through with the offer, buy the shares and hold a portion of them for sale over the nasdaq or directly later as the stock price increases, but usually underwriters want to buy and immediately resell; they don't want to be holding shares for which they have paid the company for more than an instant. frankly, i would suspect that the funds have already put their orders in in the last 2 weeks and are holding off buying in the market, counting on getting shares from the registered offering.