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To: Dwight E. Karlsen who wrote (76470)	9/4/1999 8:26:00 AM
From: H James Morris	Respond to of 164684

Dwight, if you read last week's Business Week, you wouldn't be so confused about sluts and pimps as it's pretty well explained. You see the only difference between Investment Bankers (sluts) and net-queens (pimps) is how one chooses to describe them. I guess by now you know how I choose to describe them.;-) >> E-Loans Run for the IPO Money Failure is usually more intriguing than success. But it's harder to find because no one wants to talk about it. Mortgage broker E-Loan is far from a failure, but its recent public offering might have been, and that was good enough for a major 10-page spread in Business Week. The magazine played its cover story of E-Loan's IPO as a dramatic behind-the-scenes look at a Netco offering that teetered on disaster. Bizweek writer Robert Hof got to travel with E-Loan execs Chris Larsen and Janina Pawlowski by agreeing to hold publication of the article until the company's quiet period ended, 25 days after the June 29 IPO. But Stock Grok's drooling desire to seeing what really transpired in some of the 58 meetings with investors was dashed. Hof remained mum about those meetings, probably as per his agreement with E-Trade. Instead, readers got lots of detail about the grueling pace of the two-week road show. The founders' yuppie angst only made it more tedious. "Sometimes I feel like, why do I have the right to do this?" Larsen lamented, apparently confusing a business proposition with salvation. Besides, he and Pawlowski got to ride in limos and chartered jets and for their trouble stood to net several hundred million dollars each. Life could be worse. But Hof scored points with a few details of the heavy-handed role of investment bankers, a subject to which the press doesn't give enough scrutiny. The terms of the trade were explicit: In exchange for 7 percent of the profits (more than $3 million in E-Loan's case), E-Loan expected coverage from the underwriting banker's analysts. Morgan Stanley Dean Witter was crossed off the list when it couldn't promise the attention of Net queen Mary Meeker. Goldman Sachs won the role of lead banker, but the firm offered up little information on how it determined IPO pricing, not just with Hof, he noted, but also with Larsen and Pawlowski. Despite the fat fee they were paying Goldman, E-Loan's execs juggled their instincts and the bank's advice at a couple of key moments. When rising interest rates in June slowed the pace of refinancings, Goldman suggested holding off on the IPO for two months. E-Loan chose to forge ahead but lower the filing range by $2 a share, to between $9 and $11. After the successful road show, Goldman bumped the share price back up to $12 to $14. Larsen and Pawlowski advocated for $16 - the price that investor Softbank had offered to pay a month earlier. Given that each dollar in share price translated to $3.5 million, valuation was a key point. E-Loan and Goldman eventually settled on $14, but Larsen later regretted it. "All this work on the IPO, and we could have raised as much in one day from Softbank," Larsen said. On its first day in the public market, E-Loan closed up 164 percent, and Larsen and Pawlowski were each worth more than $200 million. By early August, rising interest rates again played havoc with E-Loan's fortunes, slamming the stock down to $22. "For all the money the IPO loan brought in," Hof wrote, "it's apparent that E-Loan's currency - like many new issues that offer relatively few shares to the public - is nearly as volatile as a South American country." Inside an Internet IPO businessweek.com <<

To: Dwight E. Karlsen who wrote (76470)	9/4/1999 1:02:00 PM
From: Glenn D. Rudolph	Respond to of 164684

>This sounds to me like the wharehouses are not working correctly or as planned. Thus, there could be a lot of wasted money.< Glenn, did you mean whorehouses? or warehouses. With all the talk of sluts and pimps on this thread, I'm getting easily confused. -g- Dwight, I understand the confusion. I was hoping to get the "pimp, slut" and other explitives off this thread but HJ does not seem to cooperate. If I want that kind of discussion, I can join one anytime in a chat room on AOL. I never did understand virtual sex in that is seems to lack that touch and feel;-) Glenn