PKSI rated +4 points out of 6
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I'm posting my opinion about this IPO using a 6-point rating scale.
Please research this IPO as I have and post your findings too.
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1. Industry-related Factors
Does this company operate in a big-ass market?
Are its products or services in "HOT" sectors, e.g., internet
infrastructure, enabling technologies, DSL, wireless internet
communication, B-to-B commerce, verticals, hosted services, etc.?
Your Grade:
(___x__) HIGH=1
(_____) LOW=0
Your explanation:
b-to-b
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2. Company-related Factors
Are the company's sales revenues growing exponentially?
Does this company have the "first-mover" advantage over all its
competitors?
Will this company emerge as the category leader in its market?
Does this company have the leading edge in its technology, products
or merchandising model?
Does this company have strong brand recognition (the "branding"
advantage)?
Does this company have a winning merchandising and customer service
strategy?
Does this company attract high-profile clients or consumers?
Does this company have multiple (or blended) revenue sources?
Has the management team demonstrated success in prior public
ventures?
Does the management team hustle?
Does the company have the best people in this field?
Your Grade:
(___x__) HIGH=1
(_____) LOW=0
Your explanation:
e market and sell our products primarily through a direct sales force. Our customers include: 3Com, 3M, Amdahl, Compaq, EDS, EMC, Ericsson, Fujitsu, Lucent, MCI/SHL Systemhouse, Microsoft, Motorola, Nortel Networks, Novell, NTT, SGI, Softbank, Starbucks, Williams and Xerox.
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3. Venture-Capital Backing
Was this company backed early on by leading venture capital firms?
[These venture capitalists are very careful in choosing the companies
they back. It's a good sign when the successful v.c. firms backed
an IPO from its early development.]
Your Grade:
(_x___) HIGH=1
(_____) LOW=0
Your explanation:
Trans Cosmos,Inc. 1,793,624 18.8%
Oak Investment Partners VI, 1,576,773 16.5%
Norwest Equity Partners, 1,441,166 15%
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4. Float
Is the float relatively small (3-5 million shares)?
[Here's the float--in millions-- for some recently priced IPOs which
are trading at least 100% above their IPO levels (as of 6/18/99):
BRCD 3.2; CMTN 4.0; CPTH 4.5; EXTR 7.0; MKTW 2.7; MMXI 3.0;
MRBA 4.0; PCLN 10.0; PRSF 8.0; PHCM 4.0; RBAK 2.5; RTHM 9.4;
STRM 7.0; SILK 3.0; VERT 3.5]
Your Grade:
(___x__) HIGH=1
(_____) LOW=0
Your explanation:
4.5mm
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5. Quality of the Lead Underwriter
Is this company being underwritten by at least one of the three
best-performing lead underwriters--Morgan Stanley Dean Witter,
Merrill Lynch, and Goldman Sachs?
[These brokers are very careful in choosing the companies they underwrite
because they need to protect their long-established reputation for
offering quality IPOs and quality investments. If this IPO passes
muster with Morgan Stanley Dean Witter, Merrill Lynch, or Goldman Sachs,
it's usually a good deal.]
Your Grade:
(_____) HIGH=1
(___x__) LOW=0
Your explanation:
bbrs
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6. Buzz / Excitement Level
Is there a lot of "BUZZ" about and anticipation for this IPO? One way
to guage this interest is by counting the number of messages about
this IPO on the SI threads.
[The buzz factor can add to the appeal of an issue, but the absence of
buzz does not necessarily detract. Some great stocks generate buzz, and
some great stocks don't, for whatever reason.
Here are some hard figures on this concept: The PCLN SI thread had 598
messages up to the morning of March 30, 1999, when it began trading.
I believe this is the record number of pre-IPO posts for any issue. PCLN
was one of the biggest first-day movers, jumping from $16 to $84.
see techstocks.com
VERT had 69 pre-IPO messages.
On the other hand, an IPO with few pre-IPO messages may still turn out
to be a big winner. Recent examples are RBAK (8 pre-IPO posts), HLTH
(7 pre-IPO posts), CMTN (15 pre-IPO posts), and BRCD (12 pre-IPO posts).]
Your Grade:
(_____) HIGH=1
(_x____) LOW=0
Your explanation:
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Taking these criteria into account, how does this IPO stack up?
Please post your TOTAL SCORE (i.e., on a scale of 1 to 6) on
the first line of your reply message.
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RESOURCES:
Underwriter's performance
quote.com
Management team and their experience
sec.gov
SEC filings and prospectuses
edgar-online.com
sec.gov
"Hot" IPOs list
ostman.com
Free live 24/7 chat channel devoted to IPOs
chat.yahoo.com
Yahoo's list of the top performing IPOs
biz.yahoo.com
General info on the IPO-ing company
smartportfolio.com
ipomaven.com
ipocentral.com
ipo-fund.com
quote.com
ipofinancial.com
Weekly IPO commentary and analysis
ipo-fund.com
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