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Technology Stocks : Neomagic Corp. (NMGC) -- Ignore unavailable to you. Want to Upgrade?

To: Tai Jin who wrote (594)	3/13/1998 3:20:00 PM
From: vincenzo	Read Replies (2) \| Respond to of 3645

A mystery shrouded in an enigma. Who are the big sellers at $19? Those who have effectively capped this stock at half its full value. That is the mystery. The key that raises the shroud of the enigma in this mystery is found in the float and the depth thereof. The consensus opinion for NeoMagic's float in this thread has been somewhere between 3 and 24 million shares in round numbers. My research has shown that this is indeed correct but more precisely the effective float is about 20 million shares. Most of the stock restricted under rule 144 was released from all restrictions in September 1997. This comes straight from NeoMagic's SEC filings. (see below) Some thread members have taken solace and comfort in the fact that about 60% of the stock is held by insiders. It would probably bring them less comfort to know that most of the stock owned by these insiders - just happen to be venture capital firms with access to insider information but a fiduciary responsibility to their own shareholders. Their allegiance to little Neo goes only so far as their own pocket books and IRR calculations. So the mystery of the deep pockets sellers at 19 may start to unfold as one of the more unseemly aspects of capitalism. Particularly in light of the big announcement slated for April 2 by Intel concerning their mobile Pentium 2 roll out. And this is what I say to those who would drop millions of shares on the market at $19 Keep your hands in your pockets. Your shares in your vest. For I will buy them - soon for $15 or less! vincenzo (From Neo SEC Filings: ...Of the 20,134,705 Restricted Shares that will first become eligible for sale in the public market 180 days after the date of this Prospectus, 5,524,824 shares will be immediately eligible for sale without restriction under Rule 144(k) or Rule 701, and 14,609,882 shares will be immediately eligible for sale subject to certain volume and other restrictions pursuant to Rule 144. All 14,609,882 shares will be eligible for sale pursuant to Rule 144 upon the expiration of one-year holding periods, all of which will expire on or before September 15, 1997.)