when are the heavily oversubscribed, page-29

For a sophisticated investor a placement presents less risk than private research. They get to it down with management and go through the business plan. The plan will outline exactly why the company wants the money and what the expected returns are likely to be.

For the simple people here. The sophisticated investors get given more information than you and I get... They may have paid more but they know better than you and I on what to expect soon.... :)

Always follow the smart guy. Consolidation around or slightly below placement price not unusual.