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Technology Stocks : iVillage (IVIL) -- Ignore unavailable to you. Want to Upgrade?

To: lebo who wrote (380)	11/2/1999 4:04:00 PM
From: Lane Hall-Witt	Read Replies (2) \| Respond to of 598

In some cases, I think it could be as simple as you say. But secondaries with big underwriters can carry trading patterns well beyond fundamentals, especially when there's a massive short position involved. Goldman, First Boston, H&Q, and Merrill may all decide to let the secondary break. But ask yourself: what if any one of them decides to step in and support their clients -- the folks who just bought shares from these underwriters? If any one of these firms decides to run the stock, look out because it'll be a rocket ride as 2+ million shorts scramble to cover. You're essentially betting that four of the most reputable underwriters on Wall Street are going to let their clients hang out to dry. I wouldn't like those odds.