MiningCo.com (mine: news, msgs) fell 15 1/2 to 56 1/4. Jonathan Cohen, an Internet analyst at Wit Capital, started coverage on the search company with a "buy" rating. Cohen does hedge that call, though. In a note, Cohen said: "Only those investors whose objectives include speculation and long-term growth should consider purchasing."
Cohen projected that MiningCo.com sales will grow by 400 percent this year due to the company's GuideSite network, which consists of "unique and appealing" content. In February, MiningCo.com was the sixth-largest news-and-information Internet property, according to Media Metrix, with over 4.7 million unique users. Wit Capital acted as e-manager for MiningCo.com's March 24 IPO debut at $25 a share.
Meanwhile, MiningCo.com's underwriter, Bear Stearns, initiated coverage with a less-optimistic "attractive" rating, based "primarily on the rapid ascent in share price since the IPO," said Internet analyst Scott Ehrens in a note to clients. Ehrens also offered his own Net warning label to clients, suggesting that "we recommend purchase to investors who can withstand volatility of new Internet issues."
From CBS Marketwatch |
