Message-ID: <16225486.1075840980747.JavaMail.evans@thyme> Date: Wed, 23 Jan 2002 16:15:21 -0800 (PST) From: bounce-smallcapdigest-871164q@lyris.smallcapnetwork.net To: h..lewis@enron.com Subject: IPOs: Used To Abuse Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: quoted-printable X-From: "SmallCap" @ENRON X-To: Lewis, Andrew H. X-cc: X-bcc: X-Folder: \ExMerge - Lewis, Andrew H.\Deleted Items X-Origin: LEWIS-A X-FileName: andy lewis 6-25-02.PST If you are reading this message in plaintext or if you have an AOL address = you must click on this link: http://www.smallcapnetwork.net/archive/listser= v/20020123-1.html and wait for a web page to automatically open up to prop= erly read this newsletter.=20 [IMAGE] =09 [IMAGE] Dow Jones [IMAGE] 9730.96 + 17.16 6:08 pm EST, Wed., January 23,= 2002 [IMAGE] NASDAQ [IMAGE] 1922.38 + 39.85 For info, visit www.smallca= pnetwork.net . [IMAGE] S & P 500 [IMAGE] 1128.18 + 8.88 To be removed, = please click here . [IMAGE] Russell 2000 [IMAGE] 477.45 + 8.02 VOLUME= 02: ISSUE 7 =09 [IMAGE]=09 IPOs: Used To Abuse Yesterday, Credit Suisse First Boston, one of the mo= st respected firms on Wall Street said it will pay U.S. securities regulato= rs $100 million to settle charges of using abusive practices to allocate sh= ares in initial public offerings (IPOs). In a statement issued by Stephe= n Cutler, Director of the SEC's Division of Enforcement, "CSFB improperly t= ook advantage of its position as underwriter by allocating shares of hot IP= Os to customers who agreed to share their IPO profits by paying excessive c= ommissions." CSFB made $718 million underwriting technology IPOs in 1999= and 2000. The firm will pay a $30 million fine and hand over $70 million = in profit to resolve charges of "abusive IPO allocation practices". The SEC= and the National Assn. of Securities Dealers alleged that CSFB illegally p= rofited on hot IPOs by charging commissions of as much as $3.15 a share, co= mpared with a typical rate of 6 cents. The SEC also is probing whether fi= rms such as Morgan Stanley, Goldman Sachs, Robertson Stephens and J.P. Morg= an, received pledges from customers to purchase more stock after IPOs began= trading. The large investment banks' pain will most certainly turn out = to be a gain for some. Our next profile is one of the beneficiaries of not= going through a traditional IPO. We are extremely proud to have found thi= s gem. The company will be going public through an RTO, and it will open f= or trading on the American Stock Exchange. Unfortunately we do not have an = exact date on this new issue but it is safe to say that the first week of F= ebruary will be the time frame for the stock to open for trading. You can l= earn more about RTOs in our January 16th edition of the SmallCap Digest. = We cannot announce the name of the company at this time but we can tell yo= u it is a medical device manufacturer already generating significant sales = in the U.S. and abroad. The company expects to turn cash flow positive this= year and has a tremendous pipeline of products. This company is a "pick & = shovel" entity that is helping to power the biotech revolution. This com= pany has already been featured on a special segment on Good Morning America= . In addition, their shareholders include some of the smartest money on th= e planet. Because this company will not be going public through the traditi= onal IPO, all open market investors will be on an equal playing field once = the stock begins trading. The even playing field provided by an RTO is a= breath of fresh air in an industry marred with improprieties. The SmallCa= p Digest will immediately send out our profile on the company once it is op= ened for trading. For the most up to date alert on this new profile, we sug= gest our subscribers visit our home page. There we will provide the name, s= ymbol and current quote of the company the moment the stock begins trading.= Remember that although all the facts and figures will be provided to yo= u so that you may make an informed investment decision, you should still ma= ke an effort to confirm all information through independent third party sou= rces, i.e. the SEC Edgar filings and the company's web site. =09 D I S C L A I M E R :[IMAGE] The SmallCap Digest is an independent electro= nic publication committed to providing our readers with factual information= on selected publicly traded companies. SmallCap Digest is not a registere= d investment advisor or broker-dealer. All companies are chosen on the basi= s of certain financial analysis and other pertinent criteria with a view to= ward maximizing the upside potential for investors while minimizing the do= wnside risk, whenever possible. Moreover, as detailed below, this publicat= ion accepts compensation from third party consultants and/or companies whic= h it features for the publication and circulation of the SmallCap Digest or= representation on SmallCapNetwork.net. Likewise, this newsletter is owned= by TGR, LLC. To the degrees enumerated herein, this newsletter should no= t be regarded as an independent publication. Click Here to view our comp= ensation on every company we have ever covered, or visit the following web = address: http://www.smallcapdigest.net/compensation_disclosure.html for o= ur full compensation disclosure and http://www.smallcapdigest.net/short_ter= m_alerts.html for Trading Alerts compensation and disclosure. All statem= ents and expressions are the sole opinions of the editors and are subject = to change without notice. A profile, description, or other mention of a com= pany in the newsletter is neither an offer nor solicitation to buy or sell = any securities mentioned. While we believe all sources of information to b= e factual and reliable, in no way do we represent or guarantee the accuracy= thereof, nor the statements made herein. The editor, members of the edit= or's family, and/or entities with which the editor is affiliated, are forb= idden by company policy to own, buy, sell or otherwise trade stock for thei= r own benefit in the companies who appear in the publication. The profiles,= critiques, and other editorial content of the SmallCap Digest and SmallCap= Network.net may contain forward-looking statements relating to the expected= capabilities of the companies mentioned herein. THE READER SHOULD VERIFY= ALL CLAIMS AND DO THEIR OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITI= ES MENTIONED. INVESTING IN SECURITIES IS SPECULATIVE AND CARRIES A HIGH DE= GREE OF RISK. THE INFORMATION FOUND IN THIS PROFILE IS PROTECTED BY THE COP= YRIGHT LAWS OF THE UNITED STATES AND MAY NOT BE COPIED, OR REPRODUCED IN AN= Y WAY WITHOUT THE EXPRESSED, WRITTEN CONSENT OF THE EDITORS OF SMALLCAPNET= WORK.NET. We encourage our readers to invest carefully and read the inves= tor information available at the web sites of the Securities and Exchange = Commission ("SEC") at http://www.sec.gov and/or the National Association o= f Securities Dealers ("NASD") at http://www.nasd.com . We also strongly re= commend that you read the SEC advisory to investors concerning Internet Sto= ck Fraud, which can be found at http://www.sec.gov/consumer/cyberfr.htm .= Readers can review all public filings by companies at the SEC's EDGAR page= . The NASD has published information on how to invest carefully at its web = site. =09 --- You are currently subscribed to smallcapdigest as: andrew.h.lewis@enron.com To unsubscribe send a blank email to leave-smallcapdigest-871164Q@lyris.sma= llcapnetwork.net