Why ACCL will easily top $100 quickly:
ACCL is going to surpass SONS as the hottest deal of 2000.
Revenues are bigger, as is the addressable market, and the company is growing faster.
SONS has a $9.357B market cap as of Friday's close, and is the #1 performing IPO of 2000 with a 573% return over its $23 IPO price.
A similar market cap for ACCL will yield a share price of approximately $188.
Such a move would equal a 1153% return on the issue price of $15. Class of 1999 IPOs that have enjoyed similar (or better) moves are BRCD, RBAK, JNPR, GSPN, TIBX, DITC, ARBA, VIGN, ARTG, NVDA, VITR, AND CMRC.
We got lucky on this one in that the shares were underpriced at $15. CS First Boston could have easily done the deal 10 points higher, which would have made the upcoming move to triple digits seem like a less dramatic percentage gain.
CS First Boston (ACCL's lead underwriter) is the #2 underwriter of hot deals so far in 2000. They have done 5 of the hottest 20 deals this year vs. #1 Goldman's 7 deals.
Other CSFB deals in the top twenty of performance this year are NUFO (the second hottest deal of 2000 with a 388% return), CTLM, ORCH, and NMTC.
ACCL is presently the 12th best performing deal of 2000, but I see it racing to the top of the list as soon as next week.
Enjoy the ride. |
