from redherring.com:
Neoforma.com, based in
Santa Clara, California, is
engaged in the
business-to-business
(B2B), e-commerce trade.
B2B is the hot ticket these
days in the IPO market.
Who can forget the
first-day moonshot of Freemarkets
(Nasdaq: FMKT), up 483.3 percent on
December 10. The stock recently traded at
$208, up 334.1 percent from its offering
price of $48 a share. And what about eBenx
(Nasdaq: EBNX), which popped 124.4
percent when it closed its first trading day,
also on December 10. It is now up 95
percent from its offering price of $20 a
share.
LESS IS MORE
Neoforma.com is similar to most dot-com
startups, having in common little or no
revenue, and boasting losses in the millions.
Neoforma.com reported $464,000 in total
revenues for the nine months ended
September 30, 1999, it's first
revenue-reporting period. But along with
revenues in 1999, came big losses. Its
nine-month profit and loss statement
showed a deficit of $25.6 million, up from a
loss of $2.3 million over the same period in
1998. The company stated that it has an
accumulated deficit of about $30.6 million,
and expects to incur substantial operating
losses in the foreseeable future. That's life in
today's fast lane for Internet IPOs. The
Redherring.com Street Poll gives the stock
a Warm reading in the aftermarket category. |
