IMO, an "overlooked" factor in evaluating Y2k is the broker backing the company. When looking at the IBD list from Friday -
IMRS,SYNT,MAST,CBSL,TSRI,CPWR,PSFT,KEA,CBR,AND CHRZ. All but TSRI were either underwritten or had entered into an "advisory relationship" with a quality investment bank prior to significant trend ups in price. TSRI's recent upswing came after announcement of a private placement by Janney Montgomery Scott(January). I am sure that this was not the only reason for the move up but I am sure the buy report as well as some conveniently timed announcements by TSRI - on the advice of Janney - did'nt hurt. Another example is TAVA, the breakout had more to do with Hanifen Imhoff initiating coverage than the announcements by the co.
Using this reasoning - and I have to since my background is finance, not technology - provides arguments for and against 2 recent IPO's.
CMND has Cowen and Volpe - 2 quality underwiriters - behind the IPO. I have and will be averaging into CMND over the next month.
CTWO has Gillford - not to demean Gilliford, but no Alex Brown (IMRS) or UBS (CBSL) behind their IPO. I would proceed with caution. See IAIC - placement by Newby and Cruttendon followed by a quick runup which it could not hold.
My criterion for determining a "quality" underwriter or investment bank is based on goodwill - size of firm, name recoginition, reputation etc.
It's been a pleasure reading other's opinions, particularly those with an obvious understanding of programming -which I have'nt a clue, on this board. I hope mine is as helpful to other's.
Sincerely |
