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Technology Stocks : E*TRADE IPO ALERT THREAD -- Ignore unavailable to you. Want to Upgrade?

To: eDollar.com who wrote (13776)	11/24/1999 2:26:00 PM
From: Dean N. Browning	Read Replies (2) \| Respond to of 15145

I don't buy the argument that UW's do "solid research" and that no flipping should be the rule. Using DIGI as an example, it sure looks like CSFE, H&Q, etc. really did a solid research job. Issue price for 4.5 M shares of DIGI was $15, it opened at $34 and closed at $55 on volume of 11.5M. A "solid research" job would have put the issue closer to the open not off by 130%. And to take the argument one step further, lets say that those 4.5M DIGI shares were placed in no flip accounts. What do you think the opening would have been? Would this approach have served those investors that wanted DIGI but didn't receive an allocation? Again, my point is that flipping allows the individual investor the option of keeping an IPO or selling to someone who does want the stock at a market clearing price. I liked DIGI at 15 but why should I or any individual buyer be forced to hold onto a company with only 80 some employees, 1999 sales of less than $2M and a market cap of almost $1.3B ? I certainly would not buy DIGI at $55 so why should I be forced to hold onto it at that level when someone is willing to give me $55 for my shares?

To: eDollar.com who wrote (13776)	11/24/1999 7:45:00 PM
From: mact	Respond to of 15145

edollar...my ML broker always calls me to flip my shares...when i asked her if they penalize for flipping she said for the mostpart "no"!...they only get upset if u sell below ipo price cause that means they have to support it and buy up shares and broker also loses commission...they also get irritated if u flip a significant amount of shares at once but for the mostpart, this isnt a problem for any individual cause we do not receive that many shares...underwriters are not stupid, they know that the jnpr,scmr and cflo's of the world are going to open in the 100's...they price them low for the stock to gain momentum and get free publicity(have to remember that most startups spend most of their cash on pr)...they also "spin" the ipo shares to potential clients (sec investigating this right now as it is essentially a bribe) as well as handing them out to wealthy investors...what good would an ipo from morgan be if they gave it u for 150 per share if u could buy it in the open mkt for the same price...jmho. mact