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Technology Stocks : Charter Communications (CHTR) -- Ignore unavailable to you. Want to Upgrade?

To: Mary Baker who wrote (476)	11/11/1999 5:54:00 PM
From: David B. Higgs	Respond to of 2437

Mary, You are correct. CHTR collects 25M X $19 and Goldman gets to sell 25M shares at whatever the market will support. Nothing unusual here as the additional allocation will occur in most IPOs. Check the prospectus and you will see comments on this. This is just another way the underwriter gets paid for their services. Wall Street was expecting this so you can be assured this action was already priced in to the stock. Regards

To: Mary Baker who wrote (476)	11/11/1999 6:01:00 PM
From: Hawkmoon	Respond to of 2437

I read this as Charter SOLD more shares to the UNDERWRITERS who BOUGHT more shares. Am I misinterpreting this???? Yes. And now they have sold that stock to their clients (or kept it on their own books). Now that this is out of the way, we now have the final amount of stock that is available out there. Didn't know about it, but it may account for the reason the stock didn't perform as some expected on the 1st day (50% plus gains.. :0). The market knew that more stock would be made available from CHTR should that option be excercised. Do you think they'll try and get the best price they can for that stock?? <VBG> Regards, Ron

To: Mary Baker who wrote (476)	11/11/1999 6:42:00 PM
From: SecularBull	Respond to of 2437

You read it correctly. The underwriters had the option to buy 25MM additional shares at the IPO price if they wanted to afterwards. Obviously, they thought that it was a good idea. These shares are in addition to those that came out in the initial IPO. This info was in the SEC filings. Regards, LoD

To: Mary Baker who wrote (476)	11/11/1999 9:13:00 PM
From: AmericanVoter	Respond to of 2437

Thread, please correct me if I am wrong... but if 25.5 M shares were bought to cover over-allotment, then the Lead underwriter is exercising an option to buy them at IPO price and allotting them at IPO price to the different co-managers... it only means that demand was high by at least that much... I would tend to think that it would be highly illegal for any other underwriter to keep the shares on their books or even sell them at current market... that would be in-your-face thievery... best regards amein

To: Mary Baker who wrote (476)	11/11/1999 10:40:00 PM
From: Craig Gordon	Read Replies (1) \| Respond to of 2437

Watch out for Goldman Sacs. Here is what they did to me on the day Microsoft went public. Since they were the underwriter if I wanted to get Microsoft stock on the opening I had to open an account with them so I could put an order in prior to Microsoft going public. Originally MSFT was scheduled to go out at $16 but there was so much demand that they upped it to $19. I put in an order to buy 2000 shares. Here is what happened. They filled me with 250 shares at $21 and 1750 shares at $27. Now right when Microsoft started trading I bought some for my kids college education accounts through Schwab at $25. When I asked Goldman Sacs what the hell happened they told me "We could only get you 250 shares as an allotment and we had to wait 4 hours to begin trading the stock in the open market since we handled the initial public offering" If you haven't figured it out they don't use vaseline.