Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : WR, LB and Friends. NO HYPESTERS OR SCAMMERS -- Ignore unavailable to you. Want to Upgrade?

To: star56 who wrote (1607)	3/6/1999 8:26:00 PM
From: Tom Allinder	Read Replies (1) \| Respond to of 13776

IPO: It's Probably Overpriced. :) Tom

To: star56 who wrote (1607)	3/6/1999 11:31:00 PM
From: Kimberly Lee	Read Replies (2) \| Respond to of 13776

The PriceLine IPO will perform very well in the first few days aftermarket as MSCO is the lead underwriter, assisted by three big time IBs, but the company's business model leaves much to be desired. In the most recent 6 months, it generated around 30 million dollars in revenues but somehow managed to run up net losses of 90 million dollars. Their business is akin to selling US $1 bills for 33 cents each -- I just don't see how they will ever manage to generate any profit without some serious overhauling of the model. If it continues to bleed at this rate, the cash infusion generated by the IPO will vanish within 3 months. Then what, a secondary offering? (well, actually DRIV did have a secondary offering 4 month after its debut, so it's not out of the question; nothing is out of the question for these net stocks.) MSCO has postponed the PCLN IPO until late March. Until then, we have ROWE, FLAS and IVIL to play with. I expect to receive a generous allocation of IVIL IPO shares. As for the other 2, I doubt I will receive more than a token 100-200 shares.