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

To: JohnG who wrote (36948)	7/23/1999 9:07:00 AM
From: JGoren	Respond to of 152472

The underwriting agreement allowed the underwriters to sell over NASDAQ but I really can't believe they did much in the market as opposed to reselling. The technical distinction between a broker and a dealer or underwriter is that the broker is the agent of a buyer and the dealer buys the shares and then sells to the ultimate purchaser. The underwriting agreement provided that Lehman and GS would buy from the company, and then sell directly to others or in the market. It did look a bit nasty. I don't know if there is anyway to figure out exactly what happened. I can't believe that the underwriters sold over NASDAQ as the price went down but rather they immediately placed the stock with the funds. The mistake I made in analyzing the offering before it occurred was thinking it would be handled more like an IPO, going effective in the morning and that any so-called "market stabilization" would take place afterwards. It appears, however, because it was done after hours during the evening that the strumming of the market occurred before the registration statement went effective. As to your last comment, given the fact that the stock has been found by so many new investors recently, a general market selloff and the big decline the other day would I think scare the stock out of new investors. These events were IMHO precipitated more by the tech selloff than anything else. AT (another topic): Ericy up over 2 at 30+ in foreign trading; belief it was oversold.