In order to better focus the discussions about this IPO, I've created the following check list of criteria which largely determine whether an IPO has the potential to pop the first day and/or maintain a long term premium over its IPO pricing. Please comment on this IPO in light of the following items:
1. Who is the the lead underwriter and how do it's IPOs typically perform in the after-market?
2. Is the company a pure internet play (a real dot.com company)?
3. Who are the company's competitors?
4. Is the company's brand name, product(s), or service(s) well-known by the net-surfing community?
5. Are the company's product(s) or service(s) in a rapidly growing or hyped niche (e.g., dsl in 1999)?
6. Does the company's management have a reputation for being successful in previous techie/inet ventures?
7. Does management have "star" appeal (e.g. TSCM's Cramer)?
8. Has the company demonstrated substantial year-over-year revenue growth?
Without these factors in place it might be better to avoid the IPO or to try to buy the stock in the aftermarket (at prices below the IPO level).
How does this IPO measure up against these criteria? |
