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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: pcstel who wrote (105273)	9/21/2001 1:02:20 AM
From: puzzlecraft	Respond to of 152472

The fact of "Trillions that have evaporated in the equity markets" is misleading in that some people equate equity loss with cash loss in terms of economic impact. Let's take LNUX for example. The co. IPO'd 4.4 million shares @ $30 a share. $132 million was transferred to LNUX from those who bought LNUX at the IPO. Plus a few more million from venture capitalists before hand. LNUX has 54,119,861 shares out. On IPO day (12/9/99), the stock opened at the absurd price of $299 a share and peaked the same day @ $320 a share. Peak market cap was $17.32 billion, with a price/sales ratio of 575 and the company never made a cent (excluding the $ from the IPO which may have been the real purpose of the company). So after the IPO, it's hot potato time with the subsequent exchange of shares a zero sum game, $ being transfered from buyer to seller (and some $ siphoned as commissions, fees and taxes). LNUX trades for 91 cents today. While the equity has declined by more than $17 billion from the peak, the only money which actually disappeared from the investing universe was the initial $132 million which went to the company... and even that has been circulated elsewhere.... the rest has been transferred to one person / fund / trust or another on the way down to oblivion.