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Technology Stocks : Steven M. Samblis answers IPO questions direct -- Ignore unavailable to you. Want to Upgrade?

To: Bobbie Boucher who wrote (55)	4/5/2000 1:47:00 AM
From: Bobbie Boucher	Read Replies (1) \| Respond to of 127

IPO Market -2-: Going Through Needed Correction 07/15/1996 Dow Jones News Service (Copyright (c) 1996, Dow Jones & Company, Inc.) Irv DeGraw, research director for the IPO Insider in Sarasota, Fla., and a finance professor at Eckerd College in St. Petersburg, said the new issues market will languish until major companies file their quarterly reports. Strong quarterly reports will mean the correction will be short and the market will quickly rebuild from a new base. 'The brakes are on,' he said. 'The market isn't dead but it will act like it's in a coma. What we'll see is a real culling of the registrations. Many deals will be postponed and what will come to market will be top quality or real dirges - there always seems to be room for marginal deals and they'll attract speculative money.' Investors willing to hold blue chip stocks through the current rough spell can find bargains in companies like Motorola Inc. (MOT), which now trades at 53 3/8, down from a 52-week high of 82 1/2 set last September. 'This is a correction - an overdue correction,' DeGraw said. 'No one wanted it, but here it is. But for anyone who has been in the new issues market for any length of time, this is just another bump in the road.' Steven Samblis , chief financial strategist for Samblis in Longwood, Fla., said shrewd IPO investors won't be spooked by today's drop in the broad markets. 'The IPO market moves on perceptions and a strong stock with a good story will do fine,' he said. 'This is absolutely minor and the only way it will become a major event is if people start screaming. 'The sky is falling!' and investors believe them.' He said many IPO investors make buying decisions independently of any fluctuations in the broad market because companies going public are new and often without an extensive record of earnings. Investors size up pending IPOs by looking at the company's product, future growth and management. A spokeswoman for Hambrecht & Quist LLC in San Francisco said the company's planned IPO is still pending and no date has been set. Hambrecht & Quist, a specialist in raising capital for high-tech and health-care companies, plans to sell a 15% to 20% stake in an IPO and raise about $80 million. H&Q, with Morgan Stanley & Co. and Smith Barney Inc., will underwrite the offering. (END) DOW JONES NEWS 07-15-96 5:32 PM