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Interesting debate here... May I point to the
fact that there are large number of shares issued before IPO at much lower price
than even the current market level. I guess we won't know how many of those
shares sold onto the market.
Regards,
Osbert Sun
----- Original Message -----
Sent: Friday, April 14, 2000 2:12
PM
Subject: [sharechat] BDO
Gordon
The point I am
making is that BDO's trading performance can't possibly affect the share price
right now. They haven't been at it long enough to achieve anything good or
bad. The share price is being set by a current market perception that it is
some form of canine. If that is the case why did the current sellers
participate in the IPO if not to stag the issue?. It is no more a dog now
than it was 3 weeks ago. Those getting burnt now are those who believed
the share price would rocket. Wiser heads left it alone or alternatively
invested in it for the long term in anticipation of dividends or share price
appreciation based on actual trading performance.
GPT
So
its OK for value investors to buy a stock at its initial listing and see it
fall 40%....or are they all getting in now at the discounted rate.....trading
volumes would suggest not.
G
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