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 : Juniper Networks - JNPR -- Ignore unavailable to you. Want to Upgrade?

To: Bill who wrote (903)	9/3/1999 9:35:00 PM
From: Tom Hua	Respond to of 3350

Sorry Bill, meant to say down as much as 25% when it hit 170 yesterday. regards, Tom

To: Bill who wrote (903)	9/4/1999 8:31:00 AM
From: Tom Hua	Respond to of 3350

September 2, 1999 Juniper Networks Plans Quick Follow-On Offering By SCOTT THURM Staff Reporter of THE WALL STREET JOURNAL Juniper Networks Inc., one of the most successful initial stock offerings of the year, filed for an unusually quick follow-on offering that could bring the maker of telecommunications equipment $300 million and more than double the number of shares in public hands. Juniper, Mountain View, Calif., said it planned to sell 1.5 million shares as part of the offering, which it expects to complete by the end of the month. Several of Juniper's early corporate backers plan to sell an additional 3.5 million shares in the offering. Underwriters may sell an additional 750,000 shares if the offering is oversubscribed. Shares of Juniper, which makes superfast routers for moving computer traffic across the Internet, have skyrocketed since the company's initial offering in late June. Juniper's shares were sold at $34, closed at $98.875 on its first day and climbed as high as $234 in intraday trading last week. That gave the company, which has never turned a profit and had recorded less than $32 million in sales in its existence through June 30, a market value of more than $11 billion. Wednesday, however, investors appeared to worry that the additional shares would depress the value of Juniper's stock. Juniper fell $24.75, or 12%, to $180.25 in Nasdaq Stock Market trading. Andy Schopick, an analyst for Nutmeg Securities, said stocks typically fall when hot companies announce follow-on offerings because there will be less "scarcity value" in holding the shares. The 5.75 million shares that could be made available in Juniper's follow-on offering would more than double the 5.5 million shares that have been in public hands since the IPO. "I cannot recall a follow-on offering as quickly as this one," Mr. Schopick said. Marcel Gani, Juniper's chief financial officer, said the company chose to do a follow-on offering to help "manage" the distribution of shares when the corporate backers sell their stock. "We'd prefer not to have a large number of shares come on the market in a disorderly fashion." Mr. Gani said Juniper, which reported having $108 million in cash on June 30, doesn't particularly need the money it will raise or have immediate plans for it. The largest-selling shareholders are Lucent Technologies Inc. and Newbridge Networks Corp., both of which plan to sell at least 1.5 million of their 1.8 million shares. Representatives for both companies said they had initially invested in Juniper because they were interested in its technology, but they no longer have business relationships with Juniper. "We're better off with the cash than owning the shares," a Newbridge spokesman said. Lucent and Newbridge were among four established makers of telecom gear that invested in Juniper. Nortel Networks Corp. sold its stake in Juniper's initial offering. Telefon AB L.M. Ericsson of Sweden still owns a 6.3% stake.