I'm going to give it a shot, though I suspect that ONIS will open somewhere in the vicinity of $50. BTW, I first read Edwin Lefevre's book when I was in my mid-teens. It made me hyperventilate and pine for an lost era. Not that I have a gambling problem. LOL. Who would have guessed that we would have online bucket shops. I distribute two or three copies a year to various friends. Regards, Glenn.
An excerpt from CNET.news.com:
news.cnet.com
Networking firms may boost slumping IPO market
By Dawn Kawamoto
Staff Writer, CNET News.com
May 19, 2000, 12:35 p.m. PT
After a series of dismal weeks in the IPO market, networking firms that focus on the hot market for fiber optics are giving some life to Wall Street.
ONI Systems, a telecommunications company that builds optical networks, plans to offer 8 million shares next week to raise up to $184 million, based on the high end of its price range. The company yesterday raised its range to $22 to $24 per share from a range of $14 to $16.
Analysts say that the interest in fiber-optic builders is a good sign that there may be some life yet in the market for public offerings. Just this week, optical equipment builder New Focus doubled in its market debut. The performance marked the first time in more than a month that an IPO managed to double its initial price on the first day of trading.
"We're starting to see investment bankers coming back to the markets with selective deals in fiber optics and semiconductors," IPO.com senior analyst Jeff Hirschkorn said.
ONI develops and markets communications networking equipment based on optical technology to metropolitan and regional networks. Formerly called Optical Networks, the company competes against networking companies such as Nortel Networks and Ciena, as well as a number of start-ups, such as Chromatis Networks, that are now entering the hot market.
Analysts say that ONI is well positioned, as there are still few large players to compete with. Yet that is expected to change soon, SG Cowen analyst Jim Kedersha explained.
"The market has started to move, but it hasn't exploded yet," he said.
During the three-month period ending March 31, ONI Systems generated revenues of $3.6 million, compared with $565,000 a year earlier. Net loss increased to $34.2 million for the period, compared with a loss of $4.8 million a year ago. The company will trade under the ticker "ONIS." |
