Ashley,
While making comparisons, one also has to look at the specific nature of the relationship betw. the two companies and the health of the parent company.
To apply a general principle misses the point of a particular company's business strengths and business strategy.
To apply a general principle also misses what is the specific nature of the particular IPO (shares offered, price, product offered, et cetera).
I'm not invested in MALL so I don't know the particulars. My glib understanding of MALL was that it wasn't the strongest company. My understanding of UBID is that it doesn't offer any unique service or software, doesn't project to profittable for awhile, and is far from a leader in its net sector. (IMO bid.com is going to blow ubid away).
Now compare this to DBC. DBC is a strong company and hasn't gotten Wall Street interest because it hasn't had name or "brand" recognition. So what does DBC do? DBC partners up with one of the most recognized symbols in the broadcast industry: the CBS EYE.
How many times during a football game on CBS does the "eye" cross the screen? Answer....A LOT!
Together CBS and DBC development a one stop shop for financial news with a multi-modal approach to generating web traffic to their site.
By mulit- modal, I mean using all forms of media (televison, radio, print) to make people aware of the Marketwatch.com site "Your eye on the markets".
Because of this exposure and the site's incredible content, the site is already designated as a leader in its NET sector providing unique content in a sector that is one of the biggest users of the net.
Now add to these thoughts above to the fact that Marketwatch.com is only issuing approx. 2,500,000 shares , and you have one tight tight float.
Thus how does one get a part of Marketwatch a UNIQUE and HOT commodity in limited supply? Through its very strong parent DBC that only needed a litlle attention to be valued higher and deservedly so.
Thus a rose is not a rose , and a MALL is not a DBC.
DBC + CBS = Markewatch.com and that's one great equation.
ztect |
