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Technology Stocks : Egghead Computer (EGGS) -- Ignore unavailable to you. Want to Upgrade?

To: Anaxagoras who wrote (6941)	3/5/1999 11:31:00 AM
From: Kip518	Respond to of 8307

Anax, as we speculated at the time the SPO was announced, the SPO might ultimately have to be pulled as the expressed use of the proceeds was to fund on-going operations -- a decidedly bearish use. At what price would EGGS withdraw the offer? -- hard to say. Clearly either the underwriters have to tell EGGS they can't sell the distribution or the trade-off between increased float and cash from the SPO isn't worth it to Orban, et al. Pulling the SPO is a two edged sword. Clearly, it releases some of the worries of dilution and frees the PR machine, but EGGS needs the cash. The puzzle on the SPO for me was whether it would finally bring analysts on board (e.g. would RB's Keith Benjamin start to say nice things about EGGS, given RB's underwriter role). The answer appears to be simply no. EGGS can't seem to get back on its feet and none of the NUTZ gurus in the industry are helping. If pulling the secondary makes EGGS bounce, the bounce should be sold. I got PM shit for saying this when EGGS was at 20, but I think there is a good chance that EGGS may again visit its old lows by mid-summer.