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Technology Stocks : MSGI Marketing Services Group Inc. -- Ignore unavailable to you. Want to Upgrade?

To: redelk who wrote (1851)	8/26/1999 11:04:00 PM
From: JAG2	Read Replies (2) \| Respond to of 3418

It is the PRIVATE PLACEMENT going on NOW! Finally, a reason for the drop in price. A spoksman from MSGI came out and made a statement. I feel better that it's the shorts driving down the price during the placement. Once it is completed in a couple of days, this stock will skyrocket as the shorts cover. So don't sell. You will be following into their trap. Let them BLOW IN THE WIND. HOLD TIGHT TO YOUR SHARES. Here is the press release: ------------------------------------------------------- Here is the story in case anyone missed it. ---------------------------------------------------------- Marketing Services Group Inc. Dow Jones Newswires -- August 26, 1999 DJ Marketing Services Dn 13% On Pressure From Pvt Placement NEW YORK (Dow Jones)--Pressure from a private equity placement caused Marketing Services Group Inc. (MSGI) shares to fall 10.4% Thursday. "We are in the final day of a small institutional private placement, and we believe that this process may be putting undue pressure on the stock. There have been no adverse events or material changes affecting the company," said a Marketing Services official reading from a prepared statement. The spokeswoman had no further comment in an interview with Dow Jones Newswires. David Doft, an analyst at ING Barings, said the past few trading sessions have seen downward pressure from investors taking short positions in an attempt to benefit in the window of opportunity created by the private placement. He expects the stock will rebound when the placement is completed. Marketing Services shares closed at 12 7/16, down 1 7/16, on volume of 1.9 million shares, which was brisk when compared with its average daily volume of 363,755. The stock has been trending downward since last Wednesday. Doft said Marketing Services plans to use proceeds from the private placement to pay off some of its short-term debt, which he said stood at $14.5 million at the end of its third quarter ended March 31. He said he didn't know what the total proceeds of the offering were expected to be. Marketing Services, New York, has been pursuing an aggressive acquisition strategy as a way to move its traditional direct marketing business to the Internet. The short-term debt has been used to implement this strategy. Mr. Ceddar; 201-938-5400;