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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: hlpinout who wrote (58145)	4/16/1999 8:32:00 AM
From: Captain Jack	Read Replies (2) \| Respond to of 97611

hio--- found this on the NSOL thread. Those counting on HUGE AV moves may see this as disappointing. A First Boston report contained the following... IPO SPREAD NARROWING -- We believe we are beginning to see a slightly more rational IPO process in terms of the entourage of Internet companies being introduced to the market each week. Comparing Q4 Internet-related deals to Q1, we found it interesting to note that the average first day jump from the IPO offer price to the first trade, declined from approximately 225% in the December quarter, to approximately 156% in Q1. We expect this spread to continue narrowing as more supply hits the market and as stocks stop going up after the first day of trading. For reference, the average percentage change from the closing price on the first day to the price two weeks later was up 31.4% in Q4 and up only 14.3% in Q2. We believe investors will learn to avoid this frenzied trading as quickly as the first few deals start going down after the first trading day. We have already seen a few examples.