PPOD<-----------A lettle education in analysis( the layman's way )
I offere the following posts on PPOD: Back in Nov 1999
Message 11814060
siliconinvestor.com
Message 11827226
By Shawn Langlois, CBS MarketWatch
Last Update: 6:52 PM ET Nov 5, 1999 NewsWatch Join the discussion
What do you get when you cross the Linux craze with all the networking hoopla? Well, investors lucky enough to snatch up shares of Cobalt Networks at the offering price have absolutely no problem answering that riddle - you get rich! Priced at $22, Cobalt (COBT: news, msgs) hit the ground running on Friday and closed up 480 percent. Nothing like a smashing IPO to get the juices flowing on the message boards.
On Silicon Investor, RupertE sang the company's praises: "This IPO features a harmonic convergence of a lot of the hottest recent trends -- Linux, Internetworking, server appliances, network caching, network storage. Plus this hasn't been thrown together in a few months specifically in order to IPO, unlike the shamelessly hyped and overblown AKAM deal last week."
Mact was concerned about the "reckless" buying frenzy: "Quite sad to see that people feel this company is a pure Linux (Red Hat) or infrastructure backbone play (JNPR, BRCD, SCMR, JNIC, etc.) ... we will have to pay a lot for this stock because of those names. Unfortunately, the buzz has definitely picked up for COBT, but for the wrong reasons."
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The bears, like Cak165, were a bit more boisterous over on Raging Bull: "COBT is just another box maker. Anyone can make a box, load it with Linux and sell it to ISPs. I don't think they have a niche or proprietary market that will allow them to stay on top."
And Tfi agreed: "There are tens of thousands of mom and pop shops and thousands of small assemblers who can do this and are doing it. COBT is probably going to be a good business, but it MAY not be a good buy at the price range we've seen today. If this area gets lucrative, the big boys (Compaq, HP, Micron, Dell) will jump in with both feet."
Is "the world crazy" like Fesp suggests, or is there substance to this IPO stock rocket? If the trend continues, keep an eye out for some higher heights. You know the boards will be paying close attention.
Peapod gets pounded
The weekend couldn't get here fast enough for Peapod shareholders. All the excitement surrounding Thursday's 50 percent pop came crashing down Friday morning as the online grocer's stock hit the skids in a big way. While Peapod's (PPOD: news, msgs) main competitor, WebVan (WBVN: news, msgs), enjoyed a 65 percent surge in its first trading day, patience was wearing thin on the PPOD boards.
Yahoo, home to many an outspoken bear, lived up to its reputation as FiveCirclingCowz posted, "These online grocery shams are going the way of milk delivered to your front door: I've never seen such a lousy business idea. Grocery stores sell at a miniscule margin, then add the expense of home delivery, etc.- what a waste!"
MvicTrdr painted an equally bleak picture: "Remember earnings. Much wider loss on decelerating, but still rising, revenues and decelerating, but still rising, margins. Not a pretty picture, and now two more well funded competitors WebVan and FoodVision.com to contend with. As far as their new service PPOD Packages, I looked at their prices, and they are almost all higher than other Net delivery services, and about 20-50 percent above your local Wal-Mart. Until that changes PPOD and others of its ilk are a no-brainer short."
And the final dagger came from Anthony on Silicon Investor: "Booger smeared and zit covered teens delivering 7-11 food right to your door? Wow, what a great deal."
The bullish rally cries that crammed the boards on Thursday were a rarity on Friday -- a 22 percent haircut can really silence a crowd. What a difference a day makes. Rest assured, PPOD longs, if and when your stock gets back on track, the bulls will, once again, proudly roam the message boards.
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