I think is going to be rather hot. It has generated a lot of news on major papers. RedHat, already has major support from Fortune 1000 companies (Oracle, DELL) and also has corporate grade software from: Oracle, SAP, Informix, Netscape, etc. By going public they will raise lots, LOTS of cash that can be use for R&D, marketing, etc. and most important credibility. They will start a new breed for stocks "the Linux" stocks ( Caldera, VA research), just like the so called "Internet" stocks (Amazon, Yahoo).
The part I am rather anxious is how many splits they will do in order to 'generate' more shares. I would not be surprise if the follow the steps of Amazon or Ebay -- astronomical. Remember, amazon has yet to be profitable. Rehat, is pretty close to being profitable, losses on 10mill are 130k.
They will do a 96m IPO, so:
- $ 5 shr = 19.2m shares ( my estimates is $7-$9shr )
- $10 shr = 9.6m shares
- $15 shr = 6.4m shares
- $20 shr = 4.8m shares
What am I going to do ? Buy as much I can and afford! If I only get one or ten shares, good! in 5 years they will be about 100! And if I can get 1000 ? wow!
Thanks,
-Ed |
