FCC ruling was a total blessing for MSLV , with paving the way for
providing the software for an ever widening Telecom sector.... a perfect day
for this IPO:
zdii.com
MetaSolv scampers up 98 percent in first trading day
By Tiffany Kary ZDII
MetaSolv Software Inc. (Nasdaq: MSLV) moved up 18 9/16, or 98 percent, to
37 9/16 Thursday after pricing its offering of 5 million shares at $19 each.
MetaSolv originally priced the offering at $15 to $17 a share. The stock moved
as high as 41 in early trading.
MetaSolv, which makes order management and service provisioning software
for telecommunications companies, had originally estimated its price range to
be between $12 and $14 a share.
The IPO was underwritten by Morgan Stanley Dean Witter and co-managed
by BancBoston Robertson Stephens and Jefferies & Co.
"They should do well, the telecom area is growing quickly," said Tom Taulli,
and analyst with Internet.com. The flexibility of the software, which allows
different customers to use it, should make MetaSolv's products popular for
many different types of customers looking to outsource, he said.
MetaSolv's big customers, such as Qwest Communications (Nasdaq:
QWST), BellSouth Corp. (NYSE: BLS), GTE (NYSE: GTE), and
strategic partners, such as Oracle (Nasdaq: ORCL) and Ernst & Young,
also make it a good bet, Taulli said.
MetaSolve in a hot area, said Steven Tuen, director of research at IPO Value
Monitor. They provide a software, as compared to Copper Mountain, which
provides a hardware. So there is some measure of proprietary content "which
will help MetaSolv do well," Tuen said. Copper Mountain (Nasdaq: CMTN)
was one of the summer's most successful IPOs.
The company's revenue for the 9 months ended September 30, was $27.2
million, showing a good uptick from the $13.2 million for the same period
in 1998. The company also turned a loss of $1.7 million in the 1998 period
into a profit of $1.2 million for the first 9 months of 1999.
For the last 9 months, Qwest Communications, Time Warner Communications
and Allegiance Telecom have accounted for 14 percent, 7 percent, and 6
percent of MetaSolv's total revenue, respectively.
MetaSolv's competitors include other providers of software that supports the
operations of telecommunications service providers, such as Telcordia
Technologies (formerly Bellcore), Lucent Technologies (NYSE: LU) Architel
Systems (Nasdaq: ASYC), and outsourcing firms, such as Computer Sciences
(NYSE: CSC), Electronic Data Systems (NYSE: EDS) and Perot Systems
(NYSE: PER).
PS: In my humble opinion this is a $100+ stock. I am holding on to some nomatter what...even if I trade it some is going in the intermeadiate portfolio....The revenues in the upcoming quaters can be staggering, due to Broadbacd just starting. |
