from CNNFN Today
In the largest debut of the coming week,
PCQuote.com, "PCQT," plans to offer 7.75 million
shares in the $12 to $14 price range. The
Chicago-based financial Web site, which provides
content to CNNfn.com, is a distributor of stock
quotes, financial news and information.
Financial news Web sites are known to have had
stellar debuts. Both the TheStreet.com (TSCM) and
CBS.MarketWatch.com (MKTW), which compete
with CNNfn.com for financial readers, soared on their
first day of trade. But the longer term outlook has
proven less favorable. As of the close Friday,
TheStreet.com shares were off 69 percent from its
early peak while MarketWatch stock had fallen 51
percent.
And like those Web sites, Chicago-based
PCQoute.com is not yet profitable. The company lost
$2.2 million in 1998 on sales of $9.9 million.
Prudential Securities is the lead underwriter on
the offering, which is expected to raise $100 million.
------------------------
What a P&D this will be.
Nobody even knows that
PCQuote has a financial
news/web site. Comparing
them to Marketwatch and
TheStreet.com is unfair.
Retail investors will
have their fun, but I
doubt anyone on Wall
Street will care.
------------------------
Insane Tulip Mentality:
If somebody told you a
company that was making
money, suddenly started
a fast growing money losing
division, and spun that
division off in an IPO so
that the main company would
not keep showing losses,
and insiders could cash in,
then would YOU buy that
IPO? Sure you would, because
we are all insane about buying
the Internet Garbage these
companies keep spinning off!
This madness may not end with
PQT, but it WILL end soon,
and painfully for most. |
