Watch Out for the Overhang

Even strong companies are seeing their share prices erode in the face of lockup expirations.
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We've been talking a lot lately about what impending lockup expirations are doing to stocks. And the following group is a perfect illustration of how a large number of shares potentially becoming available for sale -- a.k.a. the "overhang" -- can do great damage, especially in a weak market environment. All of these charts would make for great Olympic ski jumps -- except for the fact that most lack the ramp-up at the end.

It's hard to say whether these stocks have seen their lows or not. And not all of them will experience a wave of selling -- for the full skinny on the overhang at


, read the

excellent piece by my colleague

Adam Lashinsky

. All we know is that the market will be looking out for clues as to whether the insiders actually exercise their rights to sell their stock. So if you own any of these issues, or are watching them, keep a look out for signs that insiders are filing Form 144s, the required notice of their intention to sell shares. These are available on in the

Tools section of


, and elsewhere.

Here's the list for the next two weeks:

* Lockup expirations may be extended or modified by a pending secondary stock offering.

Ben Holmes is the founder of , a Boulder, Colo.-based research boutique (now a wholly-owned subsidiary of specializing in the analysis of equity syndicate offerings. This column is not meant as investment advice; it is instead meant to provide insight into the methods of new and secondary offerings. Neither Holmes nor his firm has entered indications of interest in any of the companies discussed in this column. Holmes' This Week in IPOs column appears Sundays, This Week's Secondaries appears Tuesdays, Upcoming Lockup Expirations appears Wednesdays and The Quiet Period appears on Fridays. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Holmes appreciates your feedback at