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Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium -- Ignore unavailable to you. Want to Upgrade?

To: 2MAR$ who wrote (7297)	6/5/1999 10:27:00 AM
From: Kimberly Lee	Read Replies (2) \| Respond to of 108040

yep, ostensibly good news for AOL and other leading ISPs, bad news for ATHM, which was probably affected by the rise of the HSAC IPO yesterday as well. The fact that Microsoft, Cisco both bought stocks in HSAC, and Paul Allen's 54% ownership certainly signifiy significant endorsements for the company. [B] IPO REVIEW: Wit Capital comes out a winner while others hang back By Cameron Dueck, Bridge News New York--Jun 4--A shortened work week and downturn in the stock market knocked the initial public offering market back on its heels this week. Several deals were delayed due to the weak environment, and those that did debut saw more modest opening premiums than investors have become accustomed to. However, this change has also defined the market have and have-nots, and investors are beginning to heavily favor the stronger offerings. * * * This week, 9 IPOs raised $575 million, compared with last week's 15 deals for $4.1 billion, including a $2.5 billion ADR offering from Korea Telecom. Year-to-date totals, excluding closed-end funds and unit deals, show that 201 IPOs have raised $28.4 billion, compared with the year-ago total of 227 deals for $19.5 billion, according to CommScan Inc., a New York financial data research firm. The feature deal of the week was Wit Capital Group (WITC). The online investment bank and brokerage saw a healthy 65% gain on the first day of trading, and while these returns should make any investor happy, the performance pales in comparison to previous Internet moon shots. Wit was big news because it has become a household name and an equalizer for all those investors who have been shut out of IPOs for years. However, questions remain if the company can become a strong underwriting name. Wit priced 7.6 million shares at $9 each. Internet consulting and Web design companies continue to trickle to market, with iXL Enterprises (IIXL) pricing 6 million shares at $12 each early in the week. IXL ended the week up 39% after seeing a sharp rally at the open. This is another company that appears to have more going for it than the average runner in the Internet race. SOME DEALS SIDELINED FOR A WEEK The odds were stacked against some companies coming to market this week as stock prices continue to languish and interest rates concerns keep investors cautious. The broad market chill caused several companies to delay their offerings until next week: --DirectChef (DCHF), a roll-up of foodservice equipment suppliers, delayed its IPO until early in the week of Jun 7 and cut the price talk of the offering to a maximum of $8 per share. The 6.2-million-share deal was expected to price this week at $10 to $12 per share. --Litronic (LTNX), a provider of Internet data security services, delayed its 3.7-million-share offering until next week. The price range for the offering is $9 to $11 per share. --USA.Net (MBOX), an e-mail and messaging provider, postponed its offering of 8.5 million shares at $15 to $17 each. --E-Loan (EELN), an online financial loan site, was expected to come to market next week but has been delayed until further notice. The company plans a 3.5-million-share offering at $11 to $13 each. INTERNET IPOs SEE MORE MODEST GAINS Some of the deals that braved the conditions and came to market saw smaller opening premiums than may have been possible a few weeks ago, when aftermarket valuations were skyrocketing. F5 Networks (FFIV) was another one of the stronger Internet deals, ending its first day and the week up 49%. F5 provides products that make networks and servers more efficient, and investors seem to agree this is an important infrastructure area. The company priced 3 million shares at $10 each. Internet infrastructure plays are getting more attention every day, and High Speed Access Corp (HSAC) was another company to benefit from that. High Speed, which contracts with cable-TV operators to provide Internet service in rural and suburban areas, climbed 57% after pricing 13 million shares at $13 each. Good guys don't always finish last. Zany Brainy (ZANY), a high-end toy retailer with a rock solid business plan and explosive growth, saw healthy gains although its performance lagged the Internet issues. Zany priced 6.1 million shares at $10 each, and ended the week up 19%. However, further gains are likely as this company proves growth isn't only about a well-polished Internet presence. THIS WEEK'S AFTERMARKET PERFORMANCE: COMPANY Offer First day of Symbol Last % Change Price trade price from offer Jun 4 price Network Access Solutions 12.000 4-Jun-99 NASC 12.063 0.52% High Speed Access Corp. 13.000 4-Jun-99 HSAC 20.375 56.73% Online Resources & Comm. 14.000 4-Jun-99 ORCC 14.063 0.45% F5 Networks Inc 10.000 4-Jun-99 FFIV 14.875 48.75% Wit Capital Group 9.000 4-Jun-99 WITC 14.875 65.28% Capital Environmental Resourc 11.000 3-Jun-99 CERI 11.188 1.70% iXL Enterprises 12.000 3-Jun-99 IIXL 16.688 39.06% Zany Brainy 10.000 3-Jun-99 ZANY 11.875 18.75% IT Staffing Ltd. 5.000 2-Jun-99 ITSTF 5.125 2.50% For full IPO and venture capital coverage from Bridge News see Story .7925. End Bridge News, Tel: (212) 372-7571 Send comments to: equity@bridge.com [symbols:US;CERI:US;DCHF:US;EELN:US;FFIV:US;HSAC:US;IIXL:US;ITSTF:US;LTNX:US;MBO :US;NASC:US;ORCC:US;WITC:US;ZANY] Jun-04-1999 16:41 GMT Symbols: US;CERI US;DCHF US;EELN US;FFIV US;HSAC US;IIXL US;ITSTF US;LTNX US;MBOX US;NASC US;ORCC US;WITC US;ZANY Source [B] BridgeNews Global Markets Categories: I/ANL I/NET S/IPO S/MKT S/NET S/STK CAP/CREDIT CAP/STOCKS CAP/INDEX MR/NEWS