From: utzoo!decvax!decwrl!sun!megatest!fortune!hpda!hplabs!hao!menlo70!sytek!zehntel!tektronix!tekmdp!mikem
Newsgroups: net.invest
Title: Re: Fortune Systems
Article-I.D.: tekmdp.1865
Posted: Fri Mar 25 16:20:46 1983
Received: Mon Mar 28 01:38:24 1983
References: houxw.123

Fortune Systems first public offering was gobbled up by the public and
oversubscribed. The majority of the investors were simply after a
high flying technology issue.

What happened is that a lot of the investors expected the stock to rise
soon after the offering; since all of the demand for the stock seemed to 
disappear once it started trading, there were a lot more sellers than buyers.

We all know what happens to stocks when that happens.

Also, some more factual notes -- the PE ratio was extremely sky high.

For a better treatment, catch Dan Dorfman's column in the papers this week.

One final note, if it was a good buy at $22 per share, it must be a great
buy at $17! (This stock was one of the largest single initial offerings ever)

Mike Mihalik