It's steady as she goes for Freeserve shares

Shares in Freeserve fell by a smidgen under five per cent on day two of its life as a plc. They fell through the 200p barrier mid morning after closing last night at 205.5p Freeserve was nestling at around 195.5p late this afternoon. News of the float jostled for top spot in today's newspapers alongside photos of learner-driver 17-year-old Prince William taking his new motor for a spin. But in the wake of the high-profile sell-off that made punters 45 per cent profit in just 30 minutes yesterday, some interesting facts have emerged. For instance The Sun reported how CEO John Pluthero saw his personal share portfolio of £1 million Freeserve shares leap by more than £400,000 yesterday. Ordinary investors, who were only allowed a maximum of £750 worth of shares because of the massive demand, only managed to make around £277. And according to The Times some investors were so keen to cash in on the float one even sent in a cheque for £30,000. You can't blame the guy for trying -- but he now has to wait 21 days before he gets the outstanding £29,250 back from Dixons and eagerness could cost him dear. Aside from the gibbering optimists, there were some who tried to urinate on Freeserve's City parade. Credit Lyonnais Securities Europe said the Dixons ISP was only worth around 100p. WestLB Panmure reported that 60p was nearer the mark. With so few shares in circulation -- and demand so buoyant -- the general feeling is that nothing dramatic is going to happen in the short term. It's now up to Freeserve to deliver on the vote of support it received and start making some cash for its investors. ®