Folks, Watch out for this selfish Short Seller. He has NOBODY'S interest but his own.
Before you sell your shares check the outstanding short positions in the market place and whether insider's are selling. In general do your own do dilligence.
Azureyes 2000 was predicting a selloff beginning 45 days before the expiration of the lockup period on May 8. He also suggested that about a week after the end the expiration period one should go long on the stock.
Really? Read the sec docs again. Those 9.5 million are all held by a tight group of senior executives and a single investment group. I think employees were able to exercise and sell options at the 90 day point.
>>>Well, if Angelo Gordon isn't selling, I sure don't know where the shares are going to come from to send this thing down. AG controls a huge number of shares. And, I don't see evidence in the 424B filing that employees beyond senior executives had to sign lockup agreements. If not, they have already been free to sell since the 90 day point.<<<
The 180 day lockup period is automatic to employees who receive IPO shares. It's not exclusive to management. They don't need to sign or report any lockup agreements, only the total number of shares that will unlock and an approximate unlock date.
In this case the number of shares are 9.5 million and the date is COB today, which means they'll be able to sell tomorrow on 5/7/03.
The "90 day point" is the quiet period for the underwriters, in which they are prohibited from selling shares. This is different from the lockup period.
Hope this helps...
On top of the lockup expiration, take a look at the chart:
It's screaming "sell" with a likely support level at $20 and a secondary support at $17.50.
There are 9.5 million shares unlocking tomorrow for employees who have an IPO price of $13.00. This is NOT the same as the 90 day quiet period for the underwriters.
The unlock period is specifically for employees who have IPO shares. They CANNOT sell until the lockup period ends. Since they have a 100% profit, and are probably not too sure of the market right now, you can expect a large portion of that 9.5 million shares to get unloaded in the next few days.
This is a classic shorting strategy. Find a stock that went public in the last 4 - 6 months, with a lot of shares unlocking, and who's price has doubled. They will almost always drop after the lockup ends.
Here's a site that gives you this info:
BTW, this doesn't mean it's a bad company or stock, and it's a great time to get back in after the lockup selling abates!!
I agree that the next few days should be really interesting.
As for management selling, I am sure that AG has a pretty good understanding of the number of shares that are going to be sold. Furthermore, I think they would have been heavier sellers if they believed management was going to start dumping. Alignment of interest would be depleted with every share sold....
Only time will tell..
Well, if Angelo Gordon isn't selling, I sure don't know where the shares are going to come from to send this thing down. AG controls a huge number of shares. And, I don't see evidence in the 424B filing that employees beyond senior executives had to sign lockup agreements. If not, they have already been free to sell since the 90 day point.
We could be headed into an interesting week upcoming, eh?