Internet IPOs Up 11% As Group In Week
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Internet stock initial public offerings continue to fill Wall Street's new issue pipeline even after the recent correction the entire sector took on interest rate fears. While I don't think the IPO market is as hot as it was in first quarter this year the latest week shows a 11% climb.
I attribute the factor to investors who sold off Internet stocks and sent them plunging 50% from the tops who now are moving back into the sector albeit a little more cautiously.
Ariba (NASDAQ:ARBA) launches itself on a 291% run from IPO price June 23, ending the day at $90 per share in one of the hottest debuts in quite some time. It sells 5 million shares at $23. While I like Ariba's ecommerce software focus much larger rival Oracle (NASDAQ:ORCL) leads the market by far.
Another strong IPO June 23 was GlobeSpan (NASDAQ:GSPN) a maker of chips that speed up data transmission over regular phone lines by as much as 100x.
|StarMedia||STRM||$ 40.00||$ 49.88||25%|
|Vignette||VIGN||$ 47.13||$ 58.75||25%|
|Priceline.com||PCLN||$ 88.94||$ 110.88||25%|
|About.com||BOUT||$ 38.63||$ 46.75||21%|
|Verticalnet||VERT||$ 71.00||$ 82.13||16%|
|Allaire||ALLR||$ 50.50||$ 57.50||14%|
|BackWeb||BWEB||$ 17.75||$ 20.06||13%|
|OneMain||ONEM||$ 17.75||$ 19.75||11%|
|WebTrends||WEBT||$ 33.13||$ 36.19||9%|
|Pacific Internet||PCNTF||$ 42.88||$ 46.75||9%|
|Marimba||MRBA||$ 37.00||$ 38.38||4%|
|Prodigy||PRGY||$ 22.94||$ 23.25||1%|
|Healtheon||HLTH||$ 87.88||$ 88.25||0%|
|Autoweb||AWEB||$ 12.50||$ 12.38||-1%|
|iVillage||IVIL||$ 44.00||$ 42.75||-3%|
|MarketWatch||MKTW||$ 51.00||$ 49.00||-4%|
|drkoop.com||KOOP||$ 12.31||$ 11.00||-11%|
Of the above, StarMedia (NASDAQ:STRM) climbed on a tout from BB Robertson Stephens "buy" rating. I think STRM may hold some promise as a Latin leader, even in the face of Yahoo or even QuePasa.com. Quepasa.com is scheduled to go public this week, with sales of basically nil in 1998 and $6.9 million loss. To me I think it's early to go public on this one.
Problem is, QuePasa.com cannot afford to not go public now that StarMedia, a much larger rival, is already trading and better known, with a marketing war chest thanks to the IPO proceeds.
BackWeb (NASDAQ:BWEB) debuted last week and hovered in the $17 to $20 range so far. BWEB was up 13% since June 17. Part of its challenge is outliving the early push (Internet broadcasting of information) hype that hit the sector in 1996/97.
Ditto Marimba (NASDAQLMRBA), which does similar things. Of the two I think both now have better models and positions than push and provide infrastructure-level services beneficial to corporations that want to regulate bandwidth and dissemination of information efficiently.
Healtheon (NASDAQ:HLTH) stayed flat for the period as investors I believe try and digest its buy of WebMD, a Web-based health site that bolsters Healtheon's Web presence tremendously in my view.
iVillage is down 3% on what I would attribute this to rival Oxygen Media receiving $100 million investment from Paul Allen. Oxygen is owned in part by Oprah Winfrey of gab-fest fame.
drkoop.com fell 11% since June 17. While I liked the Web site I saw the name game licensing as a gimmicky move. It's early in healthcare, however, and perhaps a larger firm may find KOOP just what the doctor ordered.
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