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Technology Stocks : Visual Data (VDAT) -- Ignore unavailable to you. Want to Upgrade?

To: Ariella who wrote (36)	1/11/1999 5:42:00 AM
From: RONALD H. RUST	Read Replies (1) \| Respond to of 405

I believe that only gives them the right to sell. It does not mean they will sell. I for one am not selling

To: Ariella who wrote (36)	1/11/1999 11:05:00 AM
From: Fundamentls	Read Replies (1) \| Respond to of 405

Re Nov. 3 liquidations... This is somewhat speculative but I've been in VDAT since before the IPO, so FWIW this is my guess. The company has a great story, a lot of talent, and has made some shrewd moves, BUT it was ahead of its time -- it needs bandwidth to make money, and that's only happening big-time now. A lot of us thought VDAT would take off a lot sooner than it did. The IPO timing was unfortunate, the underwriter was not the best, and the stock got beat down pretty bad in the 15 months following the IPO. As to why anyone would sell, I can only guess that given the large crowd of pre-IPO investors, a few of them didn't have the patience to wait it out. Remember that the IPO price was $6 and last Sept the stock traded as low as 1 3/16. I for one have believed it was only a matter of time before this company got discovered, but still it was hard not to get discouraged--I wasn't ready to sell, but I will readily admit that I wasn't buying more then, and I could easily understand that an investors with a shorter term horizon might have lost faith. But if I wasn't buying then, I was ready to jump on it if it started to get noticed, which last month it did. I bought more -- and mostly warrants, which were a pure upside play when the stock was at about $4, since the activation price was $7.20 and the strike price $6. I haven't been disappointed (and my return on the warrants has been about 400% in a month). I think the fact that so few investors jumped ship is testimony to the belief that there's really something here. A lot of the non-insider pre-IPO stock was locked up only a year, and the number of Sec 144 registrations since that time has really been quite small. That's good news for long holders, because there's really not a lot of float on this issue. Hope this helps. dr