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Technology Stocks : Son of SAN - Storage Networking Technologies -- Ignore unavailable to you. Want to Upgrade?

To: George Dawson who wrote (1192)	4/28/1999 9:13:00 PM
From: Kerry Lee	Read Replies (1) \| Respond to of 4808

The recipe for successful IPO is usually that IPO common stock offering is only 10-15% of the total shares outstanding, which makes the "float" small and leads to corresponding astronomical market caps. When every tech fund wants in on "Hot Company B" ( eg BRCM )and there are only 2-3 million shares freely trading, that creates the huge demand and price appreciation. When the 180 day lock-up periods end is when the "float" increases as insiders/VC's are allowed to sell their shres on the open market.Herb Greenberg of the Street.com made a big deal last year when the lock-up period for Broadcom (BRCM) expired and he predicted that the stock price would take a huge hit as insiders would flood the market with their shares..BRCM is still trading much higher today than before the lock-up period ended. ps - astute day traders/momentum traders look for stocks that have small float/large short interest ( eg "The Whiz Kid )and the result is you see gravity-defying run-ups like what occurred last year on KTEL when the shorts get squeezed.

To: George Dawson who wrote (1192)	4/29/1999 10:59:00 PM
From: w2j2	Read Replies (1) \| Respond to of 4808

George: Everyone interested in FC should listen to the Adaptec conference call 800-633-8284, #12021571. Skip to the questions. I think they explain why Adaptec and 3Com are not actively pursuing FC. They say UltraSCSI is very competitive on transfer rates, and rapidly getting faster, whereas FC is not progressing in speed. They also talk about major interoperability and backward compatability problems with FC. They claim the market for FC is currently only high-end, and the NT market will not be there at least for 2 years, until Windows 2000 becomes mainstream, if then, depending on MSFT. Also, FC awaits the NGIO/FutureIO war. They do not predict the future beyond 2 or 3 years, but in the short term, they call the FC choice "awful", and laugh it off. wj