From Inside Wall Street.....Investors have continued to get caught up in the internet frenzy, but a new sector is starting to heat up on Wall St. Industry analysts are starting to point to Web device tools companies. A good indication of
how this sector will perform this year should come with the IPO of
Allaire Corp. (Nasdaq:ALLR) which will be any day now. This software
firm's initial offering will be coming through Credit Suisse, so there
is no lack of credibility there. It appears as if it will be a 2.2
million share offering for around $15-17/share. Also look for IPO's
from Serena, Silverstream, and Innerwoven within the next 90 days. The
pulse of the industry is riding squarely on the shoulders of these
companies.
StarBase (Nasdaq:SBAS) is one company in this sector that is already
currently trading. Recently, trading activity has significantly
increased, and in the last two weeks, shares have risen from a 52 week
low of around .68, up to a high of about $2.25: roughly a 330%
increase. The stock seems to have settled recently in the $1.60 range,
but stands to benefit from the increased exposure that the sector will
receive with all these IPO's. The big boys are also involved in this
industry, including Oracle, Microsoft, and Sun Microsystems. Who
knows, maybe we have some potential suitors to buy out some of these
smaller players in the future? Have a great week, and good and invest
wisely.
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