Secondary, Follow-On, Combination Offerings (Secondaries)

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Technology Stocks
Secondary, Follow-On, Combination Offerings (Secondaries)

An SI Board Since October 1999

Posts	SubjectMarks	Bans
20	2	0

Emcee: Topannuity	Type: Unmoderated

Introduction Compact

This thread's primary purpose is to identify potentially profitable secondary offerings and to provide a forum for the exchange of pertinent information about secondaries.

The term "secondary offering" loosely refers to any of the following three different types of stock sales:
(1) The most common use of the term "secondary offering" refers to the sale of a large block of previously-issued securities owned by an "insider" or current shareholder. The proceeds of this type of "secondary" go to the shareholder, not the issuing company, and the number of shares outstanding does not change. (2) A second type of secondary offering, sometimes called a "Follow-On Offering", refers to the sale of newly issued securities by a company whose stock is already publicly traded. While this type of "secondary" involves a dilution of the EPS because of the increase in the number of outstanding shares, it does provide the issuer with funds with which to expand its businesses and may be viewed favorably even by the existing investors. (3) A third type of secondary offering refers to what is sometimes called a "Combination Offering". A Combination Offering includes both an insider-selling secondary component and a company-selling Follow-On component.

Secondaries are typically priced in close proximity to the closing price of the security on the day the pricing terms become effective.
Often times the price of a stock will move up dramatically in the days which follow a successful secondary offering, sometimes by as much as 100% in just a week's time.

Go to reply# or date (mm/dd/yy):

Reply	Message Preview	From	Recs	Posted
20	Someone over at Etrade IPO alert thread mentioned last week that quite a few s	Rita	-	2/14/2000
19	thanks for the info. from recent observations i believe there may be $ to be m	Gary105	-	2/12/2000
18	ipofinancial.com has a list. (click on "Get the details of all of this week	Rita	-	2/12/2000
17	Does anyone know of site which lists upcoming secondaries and dates? Thanks,	Gary105	-	2/6/2000
16	top... a few suggestions on when to and when not to go after a company that jus	Mkilloran	-	2/4/2000
15	Are you selecting only the winners? RHAT priced tonight after the close at $95	Topannuity	-	2/4/2000
14	top..two other foo's to watch : CREE priced Jan 18th...at $85 upgrade issue	Mkilloran	-	2/3/2000
13	Top....here's a FOO to watch (or better yet profit from ) ACTV/ symbol(IATV	Mkilloran	-	2/3/2000
12	no- not 1:1...more like scratch my back i'll scratch yours.	Topannuity	-	1/17/2000
11	Hersh Thanks for the reply. Do your brokers expect 1 for 1 (buy 100 secondary a	Jim Caputo	-	1/17/2000
10	Jim- I've got a Discover (msdw online) and 2 broker-based MSDW accounts (3	Topannuity	-	1/16/2000
9	Topannuity, I think I am in the thread.	Jim Caputo	-	1/15/2000
8	There is a secondary thread: Subject-31075	Topannuity	-	1/15/2000
7	MSDW is offering secondaries to its online customers. I have searched the web	Jim Caputo	-	1/15/2000
6	any rule of thumb of the time period between SEC filing of proposed secondary a	Gary105	-	12/17/1999
5	What do you expect with MMXI trrow? MMXI followon priced at 50.50. Does anyone	Manny	-	10/25/1999
4	Etrade has starmedia secondary now. Anyone know any details of this secondary?	Manny	-	10/12/1999
3	Spotty performance-- at best I reviewed the stock movement of secondaries unde	Topannuity	-	10/9/1999
2	Edollar- We need to research whether the "SECONDARIES", i.e., offeri	Topannuity	-	10/9/1999
1	Sometimes I also see secondaries tank outright. Like UBET and eMusic and SOFN,	eDollar.com	-	10/9/1999

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