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To: Alomex who wrote (1029)	12/17/1997 12:30:00 PM
From: Eric Dickson	Read Replies (1) \| Respond to of 164684

CDNow is another internet retailer of CDs. I read recently that an IPO is in the works. I have purchased music from CDNow for quite a while. They provide very good service. I would like to consider investing but I can't find information regarding the stock offering. Does anyone have any information?

To: Alomex who wrote (1029)	12/17/1997 1:20:00 PM
From: Oeconomicus	Respond to of 164684

Alomex, thanks for trying. What little I know (WLIK?) is based on a Lehman booklet on "Hedging and Monetizing Significant Equity Positions." They discuss every possible strategy from short against the box to equity swaps and a lot in between. For an "Affiliate with Restricted Shares", they show put buying, call writing, zero-cost collars and monetizing equity swaps as viable strategies. They simply note that "disclosure requirements may also apply". Not much help, but I assume they mean that an insider would have to file a form 4 or some other disclosure for some or all of these strageties. What I don't know (WIDK?) is whether they would have to file a 144 to get over the "restricted" problem before hand, and what disclosure they make as an "insider" afterward (there is a lag of some length for form 4 filing, I just don't remember how long). I also vaguely recall noting that the company has registered a lot of the formerly locked-up shares, so 144 may note apply. Thanks also for the earnings window explanation. Pretty much as I guessed; typical insider trading issues. I think there are a significant number of holders to whom this would not apply, including many employees. It is also important to note that there are a lot of "public" investors who may be nervously holding off for a new tax year. Supply will exceed demand. Best Regards, Bob