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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: Q. who wrote (8223)	2/14/2000 6:40:00 PM
From: John Cuthbertson	Read Replies (1) \| Respond to of 10921

Re: stock offerings There is academic research that indicates that a company offering additional shares tends to be a sign of over-valuation. The general idea is that company managers, as insiders, tend to have a greater ability to judge the valuation of the company's stock, and that they will therefore tend to sell additional shares when the stock is over-valued, and buy shares back when they deem it to be under-valued. I can look up some references if you are interested. Strictly speaking, this doesn't apply to true "secondary" offerings, which are shares sold by some large shareholder, but to shares sold directly by the company. However, if the secondary offering is made by an insider, the same principle may apply. ==John C.