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Technology Stocks : Avalon Group, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Madeleine Harrison who wrote (1112)	5/14/1999 10:25:00 AM
From: Eric Fader	Read Replies (1) \| Respond to of 1530

"If" there is an IPO (i.e., if the market doesn't crash, and assuming continued progress in StayHealthy's business plan, etc.), I would expect that it might be priced at $20 at least. In fact, I'd personally be surprised if that didn't happen, but obviously there are many important hoops to jump through first. No one but the company and the underwriters and analysts can accurately gauge potential demand for the stock, and it might be too early even for them.

To: Madeleine Harrison who wrote (1112)	5/15/1999 12:09:00 AM
From: X-ray Vision	Read Replies (2) \| Respond to of 1530

Mads, IPO pricing is done by standardized formula: [(Projected EPS as a mature corp.)x (# of underwriters/(1/underwriters reputations )) x ( brokerage hype + media hype) x ( current internet mania quotient)] divided by 2. The final denominator ensures that the IPO doubles out of the box, making the underwriters look like geniuses, worthy of their usurious 7%. Hope that puts things in perspective.