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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Casaubon who wrote (72529)	3/18/2001 9:32:40 AM
From: UnBelievable	Read Replies (1) \| Respond to of 99985

Me Either I think that they have abandoned and sense of professionalism between Abbey's call the week before last and the front running of the spoo's in conjunction with it in an attempt to create a favorable market environment for their IPO LDCL which they issued a week ago last Friday at 6. I was amazed that it was allowed to close this Friday at 4 7/16 after trading at 3 7/8 intra-day. My understanding was that when an underwriter prices an IPO they are in fact stating that in their opinion the stock is in fact worth the at issued price. This kind of statement is very different than an analyst opinion, in that it unambiguously has liability associated with it. That was one of the reasons that IPO's, even before the intense mania, were priced low and traded above the at issue price from the start. In the "old days" to have an IPO trade underwater soon after it was issued was considered a black mark of the worst kind for underwriters and something that they usually would proactively work to resolve rather than wait for the lawsuit. I was considering them as a short based on the chart but wanted to confirm that my decision was in fact based on the chart and not my own feelings.