Ask Jeeves slipped 6% after shareholders at a recently acquired company sold 5 million shares.
The Emeryville, Calif., Internet search engine said shareholders associated with Interactive Search Holdings sold Ask Jeeves stock they acquired in the companies' May 6 merger. Ask Jeeves said it granted the shareholders an early release from their lockup agreements.
The shares sold constitute these shareholders' entire positions, with the exception of their 752,236 shares that are held in escrow pursuant to the Interactive Search Holdings merger agreement, of which 601,805 shares will be released from escrow beginning Aug. 6, 2005.
The Teoma technology is actually pretty intriguing and may stand a chance with the right tweaking and marketing IMHO. The value of a company isn't always about the "now". Sometimes the value is in what people think it can do "soon".
As for investors valuing stocks based on now or the future, I have a case in point. FindWhat has been increasing profitability almost every quarter and yet its stock has decreased almost 50% during the last month. I can't figure out the technology stocks anymore. My guess is that people just don't want any risk.