Super Micro Prices Early

The Hot IPO Trader
Thursday, March 29, 2007
By Louis Basenese

Email – #118

** Super Micro Prices Early

Super Micro Computer (Nasdaq: SMCI) priced a day early and, more significantly, below the proposed range.

Such weak demand suggests institutions were similarly distressed by the company’s outstanding legal issues. So I’m recommending we pass on the deal.

As for Aruba Networks (Nasdaq: ARUN), I’m still monitoring the situation carefully. Shares priced above the range, opened 27% higher and have managed to stay there despite a lack of profits. Recall Clearwire Corp. (Nasdaq: CLWR) was not able to pull off the same feat.

However, two days is hardly enough time to determine whether this support will last, so let’s sit tight for now. I’ll provide further direction and a review of next week’s deals shortly.

Good investing,

Louis Basenese

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Stock
Rec
Date
Rec
Price
Current Price
Comments

BigBand Networks (Nasdaq:BBND)
3/19/2007
$17.00
$17.60
Buy. Sell stop is $14.50.

AeroVironment (Nasdaq: AVAV)
1/23/2007
$23.50
$23.21
Buy. Sell stop is $19.50.

Grupo Aeroportuario (Nasdaq: OMAB)
11/30/2006
$21.00
$25.49
Buy. Sell stop is $22.50.

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