Anybody who would have bought an Internet IPO in this table shown at the low would be up at least 13%. Some would have enjoyed as much as a 303% pop from the depths.
MIT SMR Article, "Sharpening the IPO Double-Edged Sword" - Fall ::
A third working paper, "Leverage, Liquidity and Long-Run IPO Returns," which examined They also should keep in mind that IPOs' low debt structure often
http://sloanreview.mit.edu/smr/issue/2001/fall/1h/HOME |
As a group these stocks gained a blended 94% off their lows and as of yesterday's close were off the highs by 28%.Through April 22 the top runner was up 775% from its initial public offering. Stats:
|
Company |
Stock |
Shares |
IPO share |
4/22 change from |
High % |
Low % |
|
name |
Symbol |
sold |
price |
IPO |
vs. IPO |
vs. IPO |
China's Google Baidu is really China's Baidu Google - The INQUIRER::
But despite these parallels, Baidu's IPO in 2005 is not Google's IPO in 2004. A key reason for this low income is that the average Chinese citizen
http://www.theinquirer.net/en/inquirer/news/2005/09/16/chinas-google-baidu-is-really-chinas-baidu-googleHOME |
|
|
|
|
|
|
|
|
VerticalNet |
VERT |
3.50 |
$ 16.00 |
775% |
831% |
117% |
|
Pacific Internet |
PCNTF |
3.00 |
$ 17.00 |
324% |
The Long Tail: Where to run the One Machine?::
The $85 million IPO is being planned for early next year. Says Rafat: "Bollywood.tv says it has the Internet rights to more than 730 Indian films,
http://www.longtail.com/the_long_tail/2008/06/where-to-run-th.htmlHOME |
Google’s IPO Strategy::
File Format: Microsoft Powerpoint - View as HTMLInternet Boom 2.0. Google’s Decision: The Dutch Auction. Online auction; Investors bid on an IPO before it goes public; Benefits: in theory a fair market
http://web.cba.neu.edu/~fgadams/doc/GooglesIPOStrategy_Rev2%5B1%5D.pptHOME |
513% |
54% |
|
WebTrends |
WEBT |
3.50 |
$ 13.00 |
341% |
546% |
69% |
|
Healtheon |
HLTH |
5.00 |
$ 8.00 |
538% |
672% |
172% |
|
Vignette |
VIGN |
4.00 |
$ 19.00 |
353% |
488% |
96% |
|
Allaire |
ALLR |
2.50 |
$ 20.00 |
223% |
278% |
70% |
|
Prodigy |
PRGY |
8.00 |
$ 15.00 |
107% |
238% |
33% |
|
iVillage |
IVIL |
3.65 A Review of IPO Activity, Pricing, and Allocations::
lows underwriters to obtain information from informed investors. . Internet IPOs, perhaps out of legal liability concerns, given the already lofty
http://www.ingentaconnect.com/content/bpl/jofi/2002/00000057/00000004/art00478HOME |
|
$ 24.00 |
296% |
442% |
168% |
|
MiningCo |
MINE |
3.00 |
$ 25.00 |
162% |
300% |
86% |
|
Autoweb |
AWEB |
5.00 |
$ 14.00 |
88% |
257% |
40% |
|
MarketWatch |
MKTW |
2.75 |
$ 17.00 |
323% |
665% |
229% |
|
OneMain |
ONEM |
8.50 |
$ 22.00 |
28% |
113% |
14% |
|
|
TOTAL |
52.40 |
210.00 |
276% |
421% |
94% |
|
|
AVERAGE |
4.37 |
17.50 |
276% |
421% |
94% |
|
|
MEDIAN |
3.58 |
17.00 |
282% |
441% |
77% |
The biggest surprise in the bunch to me is VerticalNet (NASDAQ:VERT) which hovers 9 points off its all-time high. The industrial community (vertical) Web site service reported $1.9 million in revenue for first quarter ending March 31, up 412% vs. 1Q98. Net loss was $5.6 million vs. $5.3 million net loss for 1Q98. The surprise isn't in the results but in how investors have driven this stock to a $2.35 billion market cap. That's 309x annualized revenue. On a generous $20 million sales estimate for 2000
the multiple is over 100x. I think two things could be at play here: 1) investor's genuine enthusiasm for business-to-business Internet stocks; 2) but I also believe investors may be confusing the B-2-B opportunity (which is huge) with one company's potential (which is perhaps bigbutnot yet).
One stock I find more encouraging at these levels and more pleasantly surprising could be Healtheon (NASDAQ:HLTH). In my pre-IPO analysis I was bearish on this stock for one plain reason, the healthcare system in the U.S. is very unwired. The path forward I mentioned for Healtheon at that time was in acting as a roll-up magnet. Go public, get aggressive and acquire the missing pieces to grow a strong Web presence and Internet-based information and commerce system.
Healtheon announced a $460 million stock swap for healthcare transaction software firm MEDE (NASDAQ:MEDE). The irony is Healtheon first delayed its IPO last year and debuted this year at $8 per share. At $51 Healtheon looks undervalued to me with its new public leverage just starting. Its next step ought to be to acquire Drugstore.com perhaps.
question of the
day:
will the market for Internet IPOs stay hot?
email "yes"or
"no" in subject header
results next week in emailbag monday! |
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 Internet Stocks Climb On Positive News
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