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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: TRIIBoy who wrote (12347)	12/22/1999 11:48:00 AM
From: SteveJerseyShore	Read Replies (1) \| Respond to of 18998

On December 14th 1999, The three co-founders of Stamps.comTM -- Jim McDermott, Jeff Green and Ari Engelberg -- will leave the company after apparently all of them turned in a TWO-WEEK NOTICE. They will no longer be with Stamps.com in the new Millenium. At the end of 1999 the three as a team will leave Stamps.com Why is that significant: Stamps.com recently did a secondary public stock offering. It was effective on December 7th and Stamps put out the following news release concerning its completion on December 13th, 1999. The put out a PR to say they have completed the secondary but do nothing concerning the ?The Exodus?. From the SEC filings------ ?In January 1998, we also sold 423,993 shares of common stock to each of our co-founders, James McDermott, Ari Engelberg and Jeffrey Green, for a total purchase price of $16,960, which amount includes $9,000 in notes payable to Stamps.com? Thus as these insiders leave the company they will be free to sell there shares. That $16,960 investment will net each of the three founders $27,559,545 and a market price of $65 dollars. What does the average investor need to be concerned about? Well the brain trust of company founders is bailing out and leaving as and intact working team at the most critical point in this startups life cycle. Much of the value of an Internet company is based of the promise of innovation, and what the future may hold. What the players are doing are leaving the shell of Stamps.com behind and will be starting a new company. Stamps.com has yet to see any reported sales, that comes in January. The IPO is only 6 months old. This company is not on sure footing at all. In fact it is under serious threat of lawsuits on patents from rival Pitney Bowes.