Another point worth mentioning about any underwriting deal is the fact that underwriters (in this case BBY) then offset there risk by offering some of that risk to sub underwriters (Usually Sophisticated investors) so that in the event of a shortfall the sub underwriter in addition to being paid a fee for sub underwriting the issue then writes a cheque for the amount of stock he has underwritten. BBY are therefore not liable for writing a cheque for the full amount so it would not be a plausable conclusion in my opinion to think BBY are pumping the price of SDL.
Cheers
Belkin
SDL Price at posting:
9.1¢ Sentiment: None Disclosure: Held
