***SCOC*** owns 11% of tomorrow's RMKR IPO (5MM shares):
From DLJ: Rainmaker Systems RMKR 5 million $8-$10 DLJ
Customer relationship management (CRM) services firm
Rainmaker designs and develops Internet based marketing systems designed to obtain and retain customers. Its early focus has been on client firms in the tech and software sectors. Clients include Borland, FTP Software, Lotus, Network Computing Devices, Novell, Santa Cruz Operations, Sun Microsystems, Sybase, & Symantec. The company began its life as a catalog distributor of business software. It entered the CRM sector in 1995 and sold all catalog operations in 1998. CRM business growth has been a solid 42.1% with 1999 revenues forecast in the $61 million range. The firm was profitable until 1H?99 with the catalog business sale.
The company?s lead strength is its customer base. Attention is also attracted by the valuations of this sector. Razorfish was offered on 4/27 at $16 and closed at $33.50 for a 109.4% first day. It recently traded at $72.50, up 116.4% in the aftermarket. Scient was offered on 5/14 at $20 and closed at $32.63, up 63.2%. It recently traded at $115.19, up 253% in the aftermarket. Viant was offered on 6/18 at $16 and closed at $24.38, up 52.4% the first day. It recently traded at $90, up 269.2% in the aftermarket. Pre-offering demand has been reported as strong. Given sector valuations and the firm?s customer base, we expect a first day moonshot, followed by modest aftermarket appreciation.
Offered at 8-10, if this hits just $20, SCOC's cap. will instantly increase by 25%...imagine if it sees 30 or 40, which, based on above valuations doesn't seem that far-fetched. A look at the chart also shows that this is ready to roll...I see new 52 week highs...this week.
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