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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 (80)	4/10/2000 2:03:00 PM
From: Bobbie Boucher	Respond to of 127

IPO Market Is Volatile, But Picking Quality Will Still Pay 07/01/1996 Dow Jones Money Management Alert (Copyright (c) 1996, Dow Jones & Company, Inc.) NEW YORK (Dow Jones)--The new-issues market has a case of the wobbles, but the underlying fundamentals remain sound. Volatility is the short-term price for participation in the current market. 'This isn't a market conducive to people with ulcers,' says Steven Samblis , chief financial strategist for Samblis in Longwood, Fla. Part of the problem is that price volatility creates the opportunity for immediate, short-term gains, and investors' diving in and out of the market fuels additional volatility. Software, a favorite of the new-issues market that has produced many strong opening premiums, has also produced some wild swings. Forte Software Inc. (FRTE) of Oakland, Calif., a developer of software for client/server applications, opened Friday at 48 3/4 and closed at 52 1/4. The 52-week high is 81 3/4 and the low is 34 1/2. The IPO was priced at $21 a share, and trading opened March 12 at 35. Stocks in other sectors have also taken dizzying rides. Planet Hollywood International Inc. (PHII), operator of movie- and sports-themed restaurants, priced at $18 a share, has ranged from 32 1/8 to 22, and closed Friday at 27; Spyglass Inc. (SPYG), developer of an Internet browser, priced at $17, has ranged from 61 to 14 1/4, and closed Friday at 21 7/16; Yahoo! Inc. (YHOO), developer and provider of a branded World Wide Web-based navigational service, priced at $13, has ranged from 43 to 18 1/4, and closed Friday at 21. Samblis said investors who can't stomach the possibility of a daily 15% price swing in either direction should stay out of the market until it settles down. Long-term players should be selective, focus on quality, stick by their choices and gut out the daily price gyrations. 'Quality, like cream, will rise,' Samblis said. 'Hot air will rise, too, but it quickly dissipates.' That is, investors who pick good companies with strong fundamentals will eventually be rewarded - though, unlike cream, their stocks are unlikely to follow a steady path upward. About 25 initial public offerings are scheduled to be priced this week. Here are projected opening premiums for this week's top picks, based on a survey of Wall Street analysts conducted by John E. Fitzgibbon Jr., editor of the IPO Aftermarket for Securities Data Publishing in New York. - C-NET Inc. (CNWK) of San Francisco, a provider of reports on technology for cable television and the Web, plans to offer two million shares at $13 to $15 each via Morgan Stanley & Co. Wall Street analysts see an opening premium of one to two points. (MORE) DOW JONES MONEY MANAGEMENT ALERT 07-01-96 10:22 AM EDT