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Author: kyle2395 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35  
Subject: avoiding a squeeze Date: 2/15/2001 6:05 PM
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Mr. Spindlelegs
How does QBAK increase the float without issuing more shares?


kyle
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Author: mrspindlelegs One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23 of 35
Subject: Re: avoiding a squeeze Date: 2/18/2001 11:46 PM
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The float can be increased if the insiders or underwriters of the IPO sell their shares. The sale would have to be to someone outside this group of individuals/institutions. I think they have to file paperwork with the SEC to do this. I went over to www.marketguide.com and dug up this information:

# of shares outstanding: 12,546,751

Institutionally held shares: 1,526,242 (up from 1,082,374 three months ago). That leaves about one million shares in individual investor's hands. The stock is becoming even more illiquid for the small investor if everybody else doesn't sell.

Insiders control 53% of the shares (~6,650,000 shares).

I'm pretty sure that the term "insiders" applies to employees of the company. I do not know if it applies to the underwriters of the IPO which are First Security Van Kasper, Needham & Company Inc., and Wedbush Morgan Securities. The underwriters may be restricted from releasing shares according to the structure of the IPO. Most IPO's seem to require the underwriters to hold blocks of stock for designated periods after the IPO (i.e., can't release their own allotments for first 12 months). QBAK went public on 6/23/00. Watch for press releases, probably around April or May if I am right on this issue.

Sorry about the somewhat incomplete information. I haven't been investigating QBAK strongly, just keeping it on the radar screen.

Mr. Spindlelegs

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Author: kyle2395 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 24 of 35
Subject: Re: avoiding a squeeze Date: 2/19/2001 7:43 PM
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thanks for the info. i noticed in the last earnings call, they mentioned an underwriter selling some 250,000 shares which had a slight effect on the diluted eps. maybe more will come soon.

kyle

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