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Technology Stocks : Broadcom -- Ignore unavailable to you. Want to Upgrade?

To: Clam Clam who wrote (19)	3/10/1998 9:48:00 PM
From: David R. Doerr	Read Replies (1) \| Respond to of 78

Sorry for interupting here, but I have some experience with IPO's. 99% of individual investors will not participate in any hot IPO. Retail brokers will allocate their shares to large clients, and clients that take the good deals with the bad. ATHM traded to something like 24 (open price) from an offering price of 14 (offer price) and then ended the day somewhere around 18. So why all the excitement on Broadcom? Want some excitement today, look at Broadvision (BVSN).

To: Clam Clam who wrote (19)	3/10/1998 10:28:00 PM
From: ftth	Respond to of 78

C/C: My only reason for using DCLK as a comparison is 3 of 4 BRCM underwriters participated in DCLK. "Level of hype" is one of the key determinants, so I'm making the assumption that the level of hype (often referred to as being oversubscribed) directly correlates to the underwriters. I'm no IPO wizard either, so view all my comments accordingly. Offer price is what investors who were allocated shares in the IPO pay, which is a higher price than the underwriter paid (called the gross margin); open price is where it first trades on the open market. The difference between these is the premium, often called the pop. The underwriters (a group of investment bankers) purchases the shares from the issuer for resale to the public. This is a very complex game, with a lingo all its own. There is much more to it than meets the eye. I don't think a person can successfully be an IPO investor through blind luck. You'd have to spend an awful lot of time learning about the ins and outs of the entire process for an IPO investment to have any strategic value in a portfolio. Without that, it's just a crap shoot. I realize you don't intend to make IPO's part of your daily routine, you just like this particular company. I just wanted to make the point that sure things don't exist in the stock market. Every company that comes public expects big things of their stock price after the IPO. Only a small percentage really produce that. The state of the broad market has a big influence also, and I'm not so sure early April is a good choice timing-wise.