Puma Technology Overshadows Weak Deals In IPO Market >PUMA 12/05/1996 Dow Jones News Service (Copyright (c) 1996, Dow Jones & Company, Inc.)
NEW YORK (Dow Jones)--Software is still golden in the new-issues market.
Puma Technology Inc. (PUMA) rewarded investors with a strong opening and at least one analyst believes it will have a strong run in the aftermarket.
The company, based in San Jose, Calif., develops and markets mobile data exchange software that allows users to access, exchange and synchronize information stored on a variety of devices, including notebook and hand-held computers, personal electronic organizers, smart phones and smart pagers.
The company priced 3.9 million shares, up from the originally planned 3 million, at $9.50 each through underwriters led by Deutsche Morgan Grenfell Inc. Price talk was $8 to $10. The stock opened at 12 1/2, rose to 13 1/4 and now trades at 12 1/4.
Steven Samblis , president of Samblis Financial Corp. in Longwood, Fla., said the stock could trade in the 30s in 60 to 90 days.
'In a gold rush, the only sure way to to get rich is to sell picks and shovels,' he said. 'Puma is selling picks and shovels. This stock is as important as Netscape when it came out - and I mean that with fervor.'
Samblis said Puma is just about the first to market with a synchronization product and doesn't face any real competition. It can sell to a broad range of hardware manufacturers.
'This is going to be huge,' he said. 'It's a present wrapped with a bow and when people open it and find out what's inside, they'll be all over it. The stock opened well and I think it will trade in a good range and then
slow down. But in 60 to 90 days, it could be in the 30s.'
But David Menlow, president of the IPO Financial Network in Springfield, N.J., was cool on the deal.
'I look at it and say, 'So what?' There's nothing compelling - no reason to believe the deal will be a success,' he said.
The increased number of shares showed investors were interested in the deal, but pricing it below the top of the price talk range sent a mixed signal.
'I'm not sure why the stock was received as well as it was,' Menlow said.
(MORE) DOW JONES NEWS 12-05-96 2:41 PM |
