RedHat Linux distributor -- IPO Message Board

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Technology Stocks : RedHat Linux distributor -- IPO

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To: SWF-Steve who wrote (32)	8/17/1999 8:48:00 AM
From: Stormweaver	Read Replies (1) of 51

As I understand it, they are basically just packaging a free O/S, with manuals and an easy(ier) installation front end Exactly ... and they lost $130,000 last year on revenues of only $10M. With the float ~10M & rev growth @20% the initial IPO price valued this thing at a whopping ~14 times next years revenues; now it's trading at 5 TIMES THAT. Market wise I think Redhat is doing some great stuff by positioning themselves as the Windows alternative ... but we cannot justify these valuations based on current data and 20% growth outlook; the market will be fixing that shortly. Also let's not forget about VA-Linux that appears to be backed by the heavyweights; IBM, DEC, HP. /James

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