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Technology Stocks : Buying IPOs on the open market -- Ignore unavailable to you. Want to Upgrade?

To: Susan Saline who wrote (4673)	11/18/1999 11:33:00 AM
From: Frederick Langford	Read Replies (1) \| Respond to of 5529

Great Susan, KOREA closed within a half point of where SIFY closed on it's first day. KOREA a technologically advanced country. Microsoft owns a piece of KOREA <the stock, not the country <G> Fred

To: Susan Saline who wrote (4673)	11/18/1999 2:23:00 PM
From: Shanker Reddy	Read Replies (2) \| Respond to of 5529

KOREA looks good, see analysis from IPO corner: Korean based Internet access provider This is another of the increasing number of foreign Internet deals. And like many, it is filed only on paper so details of the offering are not widely available. This firm is a cable modem based Internet access provider serving 91,000 customers in South Korea. It has a fiber optic backbone serving the coaxial network. In US terms, this is a modern and highly efficient network. However, the number of users palls by US standards. But the firm is expanding. It also serves 100 corporate clients with its fiber optic backbone. Despite the small customer base, revenue growth has been explosive, going from $7.5 million in '98 to $21 million in 1H'99. It has also attracted Microsoft as a investor with a 5% stake in the firm. Now the Microsoft presence adds a degree of legitimacy. Despite the promising fundamentals, there is a major concern with this firm. The overwhelming majority of its network, including the fiber optic backbone are not owned by the firm. Instead they are leased from one of its principals (9.4% stake in the Co.). We found this to be very disturbing and adds considerable risk to the deal. Pre-offering demand is reported to be very heavy, suggesting a strong first day. While dubious about the long term prospects, the limited US information, and the erratic reception to foreign IPOs, we believe this is a solid short term play. Expect a strong first day (80+%) followed by volatility. Expect a great deal of early flipping. So early aftermarket investors need to be cautious. This is not a long term play.