Priced tonight at $14.
From WorldFinanceNet.com:
This firm provides e-Mail marketing services composed primarily of distribution of newsletters, bulletins, and trade confirmations. It is also the resource for Sony Music?s daily newsletter. In 2Q?99 it distributed over 400 e-Mail messages for 48 clients. Customers include American Express, Schwab, The Economist, First Union, Forbes, MSNBC Interactive, Sony Music, Slate, TheStreet.com, USA Today.com, etc. Now the firm is still very young, only emerging from start up in 1H?99. It?s off to a fast start and 1999 revenues are forecast in the $7 million range. However, despite the fast start and strong customer list, the firm has yet to prove its infrastructure can sustain a high growth rate.
The spectacular valuations in this sector are attracting attention to this offering. Recent related IPOs have turned in strong first day and aftermarket performances. NetCreations was offered on 11/12 at $13 and closed at $20 for a 53.8% first day. Netcentives was offered on 10/14 at $12 and closed at $12.56, up 4.7%. But it recently traded at $18.39, up 46.4% in the aftermarket. CommTouch Software was offered on 7/13 at $16 and closed at $24, up 50.0%. It recently traded at $29.25, up another 21.9%. Critical Path was offered on 3/29 at $24 and closed at $65.88, up 174.5%. It recently traded at $66.03. Mail.com was offered on 6/18 at $7 and closed at $8.75, up 20.0%. It recently traded at $18, up 105.7% in the aftermarket. Pre-offering demand has been intensifying following the recent NetCreations deal and we expect it to grow through the offering. Given the "halo effect" of the recent IPOs we expect a very favorable opening day (40%-60%) followed by some modest appreciation. |
