All three underwriters, RSSF, HMQT and PIPR were actively supporting the issue today, so I have decided to hold.
Prior to the open, I was a little worried when I saw only PIPR on the screen. But as the issue finally opened in second market trading, all three of them were playing supportive roles, a bit passively in the beginning but gradually becoming more active. Also, it appears that many of the pre-market subscribers don't seem to be in any haste to dump, a comforting and relieving sign.
Briefing, however, seems to hold a less than rosy view of CNQR's fundamentals:
11:55 ET ******
CONCUR TECHNOLOGIES (CNQR) 16 1/2 +4. Initial public offering of Intranet-based employee-facing applications company priced last
night at $12.50 a share, outside of the $9.50-$11.50 initially proposed by lead underwriter BancBoston Robertson Stephens & Co. The
company's lead product, Xpense Management Solution, automates the preparation, approval, processing and data analysis of travel and
entertainment expense reports and front-office procurement requisitions. As of September 30, 1998, Concur Technologies had an accumulated deficit of $32 million. The company anticipates that it will incur net losses for the foreseeable future. Publicly traded competitors include International Business Machines (IBM), Oracle Corp (ORCL) and PeopleSoft (PSFT).
Shares Outstanding 16.245 mln
Market Capitalization: $268 mln
Revenues: 1997= $8.27 mln; 1998= $17.16 mln (+107%)
Net Loss: 1997= $(5.52) mln; 1998= $(18.07) mln
Gross Margins: 1997= 67.8%; 1998= 63.6%
Price/Sales Ratio (TTM): CNQR= 15.6; IBM= 2.1; ORCL= 4.62; PSFT= 3.95
With the closing price of 19 1/2, CNQR's Price/Sales Ratio increases to about 19, not a very favorable comparison when we look at both PSFT and ORCL. |
