RealTime IT News

IPO Tracker: Getting Lost in the Shuffle

The completion of the Genome Project is definitely epochal. However, there is a problem: How do you make use of the huge amounts of data? Well, there are companies that have solutions. Of course, these companies are using advanced computer techniques. It has spawned a whole new field called computational genomics.

A leader is Compugen . The company has a site called LabOnWeb.com, where researchers can go to find a wide array of tools (it is called a "life science research engine"). There are such exotic things as 2Dgels analysis (for protein imaging); PathoGenome analysis; and InstantRACE analysis (for gene function prediction, bioinformatics analysis and so on).

The company was founded in 1993 and has assembled an impressive work force, which includes mathematicians, computer scientists, physicists, chemists and molecular biologists.

However, the IPO was muted. Priced at $10, the stock ended its first day of trading at $11-1/8 (the company raised $50 million). This could be an interesting opportunity to participate in what could potentially be a huge market.

Next, Equinix went public, raising about $240 million. The company had top backers. For example, Goldman Sachs was the lead underwriter. Also, investors included Benchmark Capital, Cisco and Microsoft.

Yet, the IPO was not spectacular. The price range was reduced from $15-$17 to $10-$12. Priced at $12 per share, the stock ended the day at $13-1/8.

The company develops high-end Internet exchange centers. Basically, with Equinix, companies have the option of selecting such things as ISPs, hosting and broadband services. Currently, the company has three centers. The goal is to build 30.

The company has quickly added new customers - about 65. What's more, these customers are willing to pay big bucks (such as close to $3 million per month).

As a result, the company will likely show sharp growth in its revenues. This could mean more upside for the stock.

Finally, McData had a huge IPO, tripling on its first day. But then again, McData is a unit of red hot EMC (the relationship means access to massive customers). Also, McData is in the incredibly-fast growing fiber channel market.

But be careful. McData will have a large distribution of stock in the coming months. This is similar to what happened to Palm, in which case the stock plunged. In other words, it may be a good idea to avoid McData until the distribution is complete.