Biotech Values

[Jonathan Robinson]

Usually the underwriter will sell 115 percent of the offering to accounts in the offering. It can then afford to buy in these shares at the fifer price and below and not exercise shoe. It also can trade around the stock. For a known hot stock it may only sell 100 percent and then short above and exercise shoe. More money is made by the stabilization agent in most offerings. The trading profits can eclipse the fees.

Jon