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Technology Stocks : Winstar Comm. (WCII) -- Ignore unavailable to you. Want to Upgrade?

To: limtex who wrote (10783)	3/17/1999 3:40:00 PM
From: Alejandro	Read Replies (1) \| Respond to of 12468

limtex: Sounds like a lot of people got screwed on the secondary. Naturally, they set as high a price as they could. Overpriced it. Period. The underwriters sold it to the buyers and the underwriters shorted it to keep it stable. They then waited and covered their shorts. Then tubes. If that isn't manipulation, what is. How about the poor buyers at 41 . Were they sold a bill of goods by Solomon or what ? All I knew was that buying WCII at 41 , at that time, wasn't a good idea alone. But to buy a secondary which is increasing dilution at 41 ? There must be logic here, but I don't see it. ac

To: limtex who wrote (10783)	3/17/1999 5:35:00 PM
From: GVTucker	Respond to of 12468

limtex, RE:<<OK but if that is the case why was the stock at a level where so soon after the secondary there was no support at all for the stock? Where had the support gone?>> It is quite apparent to me that the secondary was placed in the hands of hot money to a much larger extent than the underwriter would ordinarily prefer. When this hot money tried to exit, the underwriter only had so much of a short position to support the stock. The longer term buyers didn't want to buy above 40, and WCII and the underwriter either had to go ahead and do the deal and live with the consequences, or price the deal a little more attractively and see the stock trade better in the aftermath. Long term shareholders in WCII should be happy. In the end, the price of WCII isn't any different, and the company has more capital to deliver their promises. As far as purchasers of the secondary are concerned, don't shed too many tears for them. In exchange for taking a big block of WCII, they'll probably get a decent allocation of the next hot deal.