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Non-Tech : Wit Capital - The way of the future? -- Ignore unavailable to you. Want to Upgrade?

To: DebtBomb who wrote (5678)	6/27/1999 9:57:00 PM
From: Topannuity	Read Replies (2) \| Respond to of 16809

Dale-- I've elaborated on a scaling system for judging IPOs... here's the latest version: ----------------------------------------------------------------- I'm posting my opinion about this IPO using a 6-point scale... I don't claim to be an expert at this. However, I'm trying to improve my success rate by analyzing whether this company has qualifications to be winning IPO. Please post what you know about this company and/or its products. ****************************************************** 1. Industry-related Factors Does this company operate in a big-ass market? Are its products or services in "HOT" sectors, e.g., internet infrastructure, enabling technologies, DSL, wireless internet communication, B-to-B commerce, verticals, hosted services, etc.? HIGH=1 LOW=0 **************************************************** 2. Company-related Factors Are the company's sales revenues growing exponentially? Does this company have the "first-mover" advantage over all its competitors? Will this company emerge as the category leader in its market? Does this company have the leading edge in its technology, products or merchandising model? Does this company have strong brand recognition (the "branding" advantage)? Does this company have a winning merchandising and customer service strategy? Does this company attract high-profile clients or consumers? Does this company have multiple (or blended) revenue sources? Has the management team demonstrated success in prior public ventures? Does the management team hustle? Does the company have the best people in this field? HIGH=1 LOW=0 **************************************************** 3. Venture-Capital Backing Was this company backed early on by leading venture capital firms? HIGH=1 LOW=0 [These venture capitalists are very careful in choosing the companies they back. It's a good sign when the successful v.c. firms backed an IPO from its early development.] **************************************************** 4. Float Is the float relatively small (3-5 million shares)? HIGH=1 LOW=0 [Here's the float--in millions-- for some recently priced IPOs which are trading at least 100% above their IPO levels (as of 6/18/99): BRCD 3.2; CMTN 4.0; CPTH 4.5; EXTR 7.0; MKTW 2.7; MMXI 3.0; MRBA 4.0; PCLN 10.0; PRSF 8.0; PHCM 4.0; RBAK 2.5; RTHM 9.4; STRM 7.0; SILK 3.0; VERT 3.5] **************************************************** 5. Quality of the Lead Underwriter Is this company being underwritten by at least one of the three best-performing lead underwriters--Morgan Stanley Dean Witter, Merrill Lynch, and Goldman Sachs? HIGH=1 LOW=0 [These brokers are very careful in choosing the companies they underwrite because they need to protect their long-established reputation for offering quality IPOs and quality investments. If this IPO passes muster with Morgan Stanley Dean Witter, Merrill Lynch, or Goldman Sachs, it's usually a good deal.] **************************************************** 6. Buzz / Excitement Level Is there a lot of "BUZZ" about and anticipation for this IPO? One way to guage this interest is by counting the number of messages about this IPO on the SI threads. HIGH=1 LOW=0 [The buzz factor can add to the appeal of an issue, but the absence of buzz does not necessarily detract. Some great stocks generate buzz, and some great stocks don't, for whatever reason. Here are some hard figures on this concept: The PCLN SI thread had 598 messages up to the morning of March 30, 1999, when it began trading. I believe this is the record number of pre-IPO posts for any issue. PCLN was one of the biggest first-day movers, jumping from $16 to $84. see techstocks.com VERT had 69 pre-IPO messages. On the other hand, an IPO with few pre-IPO messages may still turn out to be a big winner. Recent examples are RBAK (8 pre-IPO posts), HLTH (7 pre-IPO posts), CMTN (15 pre-IPO posts), and BRCD (12 pre-IPO posts). You can also learn more about the "hot" IPOs at this site-- ostman.com ] <><><><><><><><><><><><><><><><><><><><><><><><><><><> Taking these criteria into account, how does this IPO stack up? Please post your TOTAL SCORE (i.e., on a scale of 1 to 6) on the first line of your reply message. <><><><><><><><><><><><><><><><><><><><><><><><><><><> RESOURCES: Underwriter's performance quote.com Management team and their experience sec.gov SEC filings and prospectuses edgar-online.com sec.gov "Hot" IPOs list ostman.com Free live 24/7 chat channel devoted to IPOs chat.yahoo.com Yahoo's list of the top performing IPOs biz.yahoo.com General info on the IPO-ing company smartportfolio.com ipomaven.com ipocentral.com ipo-fund.com quote.com ipofinancial.com Weekly IPO commentary and analysis** ipo-fund.com