I agree with TDG about BND. I have a large (for me) position bought mostly around 9, but have bought as high as 16.
My reasons are the growing media promotion of internet appliances, profitibility from contract manufacturing (PE under 20), expected bounce when Virgin Megastores gives away 10,000 of their iBrow's for Free (I can't imagine them doing it quietly), and the upcoming Netpliance IPO, which I expect to be very hot.
About the only thing I disagree with in his last post is him referring to NTPL as a $1 Billion co after their IPO. They are raising $100 million. After the first day, my guess is that their market cap will be around $3 Billion.
You will then have BND, profitable with a $75 million cap, vs NTPL, unprofitable with a $3 billion market cap. Other than that, the companies will be very similar, except that BND will also have their profitable contract manufacturing operations (They have specialized in thin clients and dumb terminals for years).
It kind of reminds me of ESFT and COBT last november. I did very well on ESFT at the time of the COBT IPO. It helped that Intel made an equity investment the week after I did, but I could easily see that also happening with BND (my guess would be for an ISP or telecom Co, making a direct investment into their Merinta subsidiary. I also think it likely that they will IPO Merinta if NTPL is very successful.
John |
