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Technology Stocks : GreenMountain.com (GMTN) Selling Earth-friendly Energy

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To: Melismatics who wrote (11)6/22/1999 8:45:00 PM
From: Trevor Goodchild  Read Replies (1) of 21
 
Quote.com's ratings look to be based on empirical data related to the underwriter and co-underwriters. It looks to be a mathematical rating only. In other words, anything underwritten by Goldman Sachs will have a good rating; anything underwritten by one of the smaller Investment banks with a poor track record will not. Think of it as a power rating. GS is less likely to be the underwriter on losers and they have enough institutional leverage to support the markets of the so-so companies. Some of these Investment banks just don't have the rolodexes, clientele, capital, and pull on the market to support some of these IPOs. Remember, every time a person flips his shares, the market maker has to buy those shares if they want to protect the price. Also remember that quite a bit of their compensation is tied to their ability to overallocate shares for themselves at the IPO price.

I think GS will guarantee a succesful IPO for GMTN, however, whether that holds for 30 days (my criteria) is the issue.
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