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Strategies & Market Trends : Trader J's Inner Circle -- Ignore unavailable to you. Want to Upgrade?

To: melinda abplanalp who wrote (5603)	1/22/1999 7:57:00 AM
From: Wes Stevens	Read Replies (1) \| Respond to of 56535

NAVR: Maybe to keep running till the ipo. We could be a ways off still from the actual ipo. The other answer is worse. To let their friends in cheap on the ipo. It has happened before!

To: melinda abplanalp who wrote (5603)	1/22/1999 10:15:00 AM
From: Don Pueblo	Read Replies (1) \| Respond to of 56535

A private placement is a normal part of an IPO. The new company raises some venture capital, some goes to the underwriter to finance the deal, (generally between 5 and 10 percent of the money that is raised.) Private placements are, of course, extremely speculative, so the people that buy into it get a real good deal if the IPO is successful. Many times the investor gets resricted stock, which he /she can't sell before some specified date.