Sunday, November 14, 2004
Stock Lockup Expiry Possibly A Good Thing?
A lot of Google shares are about to be made available to the markets in just four days, as the second so-called "lockup" period expires, and some insiders and Google employees are finally allowed to sell their stock. Speculation is that this is normally a bad thing, especially in the case of Google, were limited supply and high demand have pushed the stock astronomically high. Now this article argues it may be a good thing, that the demand may be so high, the lockup will simply result in even more people buying up the Google stock, and pushing it even higher or, at the very least, making its current price more sustainable. With the stock at $169, UBS gives it a target price of $160, while Credit Suisse puts it in a range of $177-$225.