I bought a small piece of SQSW Friday. that said, my take on the earnings report Monday after the close can be taken two ways.
The way I see it is,why would SQSW push to get this to IPO when they knew earnings would be out within a week? Could be bad earnings...if it's bad, only retail investors get burned, SQSW already has their cash they raised pre_ipo. Sounds unethical, but that could happen.
Once again, I bought the stock Friday, so let me say what else could happen. First, there are no analyst projections for this stock, it's been a private company, so all predictions are off the mark. The only way to get a handle on it, would be to look at their main competitor: WEBM, which posted stellar numbers last week. And to look at the thrust of bigger fish getting into the mix (ORCL, IFMX etc). This tells me that XML is the wave of the future, and companies that have a handle on this technology early (and it's still early), are going to do quite well.
One other point is that SQSW is going to be in some major conventions at the end of this month and all of next month, and the next...which, again, tells me that there is a thrust going on for the business they are in.
So, where do I stand? Knowing the money behind this deal (Flip Flipowski at Divine Interventures et al), and predicting that SQSW is looking to create buzz for the upcoming road shows, I would have to say that Mondays' release will be just fine, and we will all be able to relax. Let me put it another way: if the numbers are great, we are going to rock for the next 4 months, if the numbers are mediocre, we will be looking to sue the underwriters.
Hope this helps,
John |
