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Technology Stocks : Internet Capital Group Inc. (ICGE) -- Ignore unavailable to you. Want to Upgrade?

To: Rich who wrote (49)	7/27/1999 1:41:00 PM
From: Tom D	Read Replies (3) \| Respond to of 4187

I see two possible entry points. I am tending to think I should buy 65% of my desired position with a limit of $50 per share. Obviously I hope to get it for less, but better safe than sorry. I will try to buy the remaining 35% 18 trading days later. As you recall, brokerages are not allowed to make recommendations until the 20th trading day. If we think the stock will decline from its initial post-IPO trades, then the best entry point is 18 trading days later. This assumes that we expect favorable brokerage coverage of the stock: the stock doubled from day 18 to day 21. HLTHs chart is a good example of the 20 day recommendation effect on an IPO. So the division between buying on day 1 and day 18 is determined by the probability that the stock will decline from post-IPO trading. If figure its a 2/3 chance it will only go up from the first post-IPO trading prices, and a 1/3 chance it will be lower on the 18th day. If on day 2 or 3 the stock breaks out on the high side, I will buy my other 35% at a premium to the day 1 price. What do you think? Tom D