Shares of online toy retailer
plunged Friday in part because it will increase spending, but largely because investment banker
released some insiders early from their so-called lockup restrictions on selling shares.
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One salesman at a San Francisco investment bank provided the following chart to his clients (one of whom provided it to me) of the companies whose shares will be
unlocked this week as part of the normal six-month waiting period following their IPOs.
The salesman also sent along the following advice: "Shorting two days before the lockup expiration date and covering on the day of the lockup
expiration has been the most profitable strategy of the past two weeks."
Investors who don't do fancy stuff like shorting stocks -- a form of betting that a stock will fall -- could use this list at least to stay out of the way (or understand) the volatility that's likely to ensue.
Adam Lashinsky's column appears Mondays, Wednesdays and Fridays. In keeping with TSC's editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet.com. He also doesn't invest in hedge funds or other private investment partnerships. Lashinsky writes a column for Fortune called the Wired Investor, and is a frequent commentator on public radio's Marketplace program. He welcomes your feedback at