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Technology Stocks : Alteon WebSystems Inc-(ATON) -- Ignore unavailable to you. Want to Upgrade?

To: ladychristine who wrote (342)	10/29/1999 11:34:00 AM
From: Paul Viapiano	Read Replies (1) \| Respond to of 414

The fact that Microsoft took a stake in Akamai for he amount they did, suggests a much higher valuation for ATON. See my previous post below... 9/28/99 Alteon WebSystems (ATON) 103 11/16 +28 3/4: ATON priced its IPO at $19 on Thursday night, opened Friday at $44 7/8, and has been flying ever since. Alteon builds switches that improve website performance for large scale enterprises. The market has been rewarding equipment companies that are beneficiaries of Internet growth with huge valuations lately, including JNPR, BRCD, and RBAK. Though some of these valuations might appear extreme given the still-low level of revenues for these companies, they are being justified by some transactions in the sector. First, there was the stunning Cisco (CSCO) purchase of start-up Cerent Corp for more than $6 bln. That purchase helped to justify the seemingly insane valuations of JNPR and RBAK. Today, we saw a similar move help to justify the market's valuation of Alteon. The Wall Street Journal reported that Microsoft (MSFT) invested $15 mln in Akamai Technologies for roughly a 1% stake; valuing Akamai at $1.5 bln. Akamai's business is similar to ATON, F5 Networks (FFIV), and Sandpiper Networks (privately held). The Microsoft investment in Akamai therefore offers investors a reality check on the ATON valuation. Note that Akamai's revenues for the first six months of 1999 totalled just $404,000. Alteon's sales for the same period were $14.6 mln. It is therefore not surprising to see ATON get a boost today from the Akamai news, just as many recent tech IPOs were lifted by news of the Cisco purchase of Cerent.

To: ladychristine who wrote (342)	11/1/1999 10:07:00 AM
From: Wayners	Read Replies (1) \| Respond to of 414

The MMs are of course governed by SEC and Nasdaq rules. They are required to provide a two sided market and act as buyers and sellers of last resort to provide liquidity to the market. They have to provide the liquidity function so that they are allowed to be collecting pretty risk free spreads by simply matching buyers and sellers and not actually holding stock themselves. In the Nasdaq National Market system there are supposed to be a lot of eyes watching the market makers. A lot of that is internal watching, self policing within Nasdaq. The SEC only has 400 people for enforcement, so things really rely heavily on the exchanges themselves for policing. The MMs are supposed to let normal supply and demand set their bids and ask prices. MMs typically just get warnings if the Nasdaq market notices they aren't providing a real two sided market with ample liquidity. MMs can come with all kinds of excuses for their bids and asks, so in reality MMs get a lot of leeway to do what they want. Pretty hard to prove actual manipulation, but it goes on.