Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Perot Systems (PER) -- Ignore unavailable to you. Want to Upgrade?

To: Hamiltonian who wrote (83)	2/2/1999 1:11:00 PM
From: Stephen O	Respond to of 542

I think you are in at the high. What do you expect it to go to? What will be the EPS in the next year.

To: Hamiltonian who wrote (83)	2/2/1999 1:23:00 PM
From: SteveG	Read Replies (2) \| Respond to of 542

The deal significantly tightened last week. Perot (known for his micromanaging) has required that penalty bid be strictly enforced (no DTC - physical delivery for deliver out accounts. And no DVP except for pot stock). There was also a 1000 cap for retail accounts. Penalty bid (which Morgan is known for being an aggressive enforcer of) is said will remain indefinitely at this point. Brokers have been warned that any flipping today gets a LONG shut out. There's been more of this type of noise on this issue than on any in recent memory. Some institutions have been released from their aftermarket commitments. Net effect, the deal probably stays relatively strong until they release penalty bid. Nice trade in a testy market. Needless to say, most from the IPO will remain happily long.

To: Hamiltonian who wrote (83)	2/2/1999 1:55:00 PM
From: Mohan Marette	Respond to of 542

"Never bet against Ross Perot'..'stock to settle around $50.00 today'-Ben Holmes. Tuesday February 2, 1:29 pm Eastern Time Perot Systems IPO soars after delay in trading (releads, updates stock price, adds analyst comments grafs 4-5, 10-11) NEW YORK, Feb 2 (Reuters) - Shares of initial public offering Perot Systems Corp. (NYSE:PER - news), a company run by former presidential candidate H. Ross Perot, more than doubled in early afternoon trading. The stock surged 156 percent to $41. In late morning, trading was halted due to an imbalance between buyers and sellers, after shares had soared $17.75 points to $33.75 at the opening. Perot provides information technology consulting. ''It is a bit unusual for stocks (after an IPO) to be halted that soon,'' said Ben Holmes, an analyst at ipoPros consultancy in Boulder, Colo. ''Never bet against Ross Perot.'' Holmes predicted the stock would settle somewhere in the $50 range by the end of the day. Morgan Stanley Dean Witter, the lead underwriter in the offering, had priced 6.5 million shares at $16 in its initial public offering on Monday. In a sign of strong demand, the size was increased from 5.5 million shares. The price range was raised twice from the original range of $11-$12: First to $13-$14, then to $15-$16. Perot, the outspoken Texas billionaire, rang the opening bell at the start of trading on the New York Stock Exchange. Dallas-based Perot Systems is the world's sixth-largest provider of outsourced information technology services. Analysts had expected the offering to be well received because of Perot's business savvy as well as the company's track record. It earned $9.1 million on revenues of $452.7 million in the first half of 1998. Holmes said he had given the company the highest rating from the beginning. ''All you have to do is look at Ross Perot's past,'' Holmes said. The company competes with firms such as Andersen Consulting and EDS Corp. (NYSE:EDS - news), which Perot founded in 1962 and sold to General Motors Corp. in 1984. GM spun off EDS in 1996. Perot twice ran for president as a third-party candidate, representing the Reform Party, which he founded.