Sixty Six Oilfield Services Inc (SSOF)

[40MERC]

Lock-Up Phase
During the lock-up period, inside shareholders are forbidden to sell their shares. Shareholders may be anxious to sell their shares. If insiders continue to hold onto their shares after the lock-up period expires, this can indicate a bright future for the company. Since the shareholders' decisions to hold or sell affects the price of the stock, it's helpful to monitor the lock-up period before investing.

Lock-Up Date's Impact on Price
If you are researching a company that recently went public, check to ensure it is no longer in the lock-up phase. Typically, stocks can't be sold during the first six months after a company's initial public offering. In some cases, the lock-up period is only 90 days. When a stock's lock-up period is about to expire, prices may fall in anticipation of insiders selling their shares and flooding the market. A stock with a small float and positive buzz surrounding the company may actually increase in value at the end of the lock-up period. Supply and demand play a vital role in the stock market.

Finding Lock-Up Information
Lock-up expiration dates are available to the public. You can refer to a company's IPO date to determine whether a stock's float is locked up. Information about publicly owned companies is typically available through the "investor relations" links on their home pages. Websites such as those of Investors Business Daily and the Wall Street Journal provide investment information about popular stocks and their lock-up expiration dates. Edgar Online allows you to enter a stock's symbol or company name to find the lock-up release date.