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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 (71)	4/10/2000 1:24:00 PM
From: Bobbie Boucher	Respond to of 127

IPO Market -2-: Fewer But Stronger Deals Expected In 1997 01/10/1997 Dow Jones International News (Copyright (c) 1997, Dow Jones & Company, Inc.) reprinted with permission Lucent, the spinoff of AT&T Corp.'s (T) communications development and manufacturing division, raised about $3 billion last April, making it the largest U.S. deal in history. The stock was priced at $27 a share via Morgan Stanley & Co., rose to 53 1/8 and now trades at 49 5/8. Instead of high-profile IPOs, analysts believe there will be a number of smaller deals in 1997. Some will offer the potential for solid but unspectacular gains. However, small deals generally don't make good stories when brokers spin yarns to prospective investors, and this could create negative feedback. If the general press compares last year's record-setting numbers in the IPO market to this year's slow start and concludes that Armageddon has arrived, individual investors could be spooked and head for the sidelines, further slowing activity. Samblis Financial's Steven Samblis believes the new-issues market will be strengthened by a new twist in IPOs - strong companies like Puma Technology Inc. (PUMA) that go public to enhance their image rather than solely to raise money. The San Jose, Calif., company, which develops and markets mobile data exchange software, priced 3.9 million shares at $9.50 each via Deutsche Morgan Grenfell Inc. The stock opened last month at 12 1/2, hit 20 3/4 and now trades at 17. 'Investors can fall in love with this kind of company,' he said. 'It's like a bank lending money to people who don't really need it. This type of IPO can drive the market up.' The IPO market's slow start in 1997 won't undercut what many analysts see as ongoing strength in computer manufacturers and computer resellers. Semiconductors, known for their wild highs and manic lows, appear to be bouncing back. Intel Corp. (INTC) this week hit 145 5/8, surpassing its 52-week high of 143 1/2. Some analysts expect a rebound in biotechs. Early biotechnology companies going public offered little more than possibility and a dream, but companies expected to come to market later this year have products and are completing clinical trials. Analysts said stocks of sit-down restaurants are worth a look, but urged investors to avoid fast-food companies because the nation's population is aging and losing its taste for meals consisting of a hamburger, fries and a soft drink. Service industries such as air conditioning and home repair are consolidating, and newly formed regional or national companies seeking to go public may offer opportunities to investors. Outsourcing companies provided strong returns in 1996, but many now appear to be fully valued and therefore offer little to investors. Medical service and supply companies were generally anemic for much of 1996 and are unlikely to recover in 1997. Internet stocks took a huge hit last year, and many analysts said there is little reason to expect a turnaround this year. However, some believe Internet companies coming to market in 1997 will be more mature than the first wave to go public, making their value and plan for future growth easier to assess. However, there are no major Internet companies lining up to go public, and analysts urge caution before plugging into an Internet stock. 'In terms of investment opportunities, the Internet is dead,' said Irv DeGraw, research director for the IPO Insider in Sarasota, Fla., and a finance professor at Eckerd College. (MORE) AP-DOW JONES NEWS 10-01-97