RealTime IT News

Not Immune From Nasdaq Ills

With high-tech issues getting pounded last week, IPOs were also affected. There were a mere eight IPOs last week. And those that did not launch last week will make another try this week.

Although, it is always worth focusing on IPOs that have the ability to launch in the midst of adverse market conditions. It is definitely a sign of strength.

One such company is New Power . In fact, the company was able to raise a staggering $504 million. Then again, the company is a division of Enron, which is a fast-growing energy broker.

On its first day of trading, the stock was up about 28 percent to $27, giving the company a tidy market cap of $3 billion. Enron now owns 46 percent. Other investors include DLJ and GE Capital Equity Investments.

Traditionally, the utility industry has been local - primarily because of complex regulations. However, there has been tumultuous change in the industry. As for New Power, it wants to become the first national utility.

True, this is extremely ambitious. But so far, New Power has done a great job. In fact, a big part of the strategy is, of course, the Internet. To this end, New Power struck a key deal with AOL.

Next, Advanced Switching Communications had a successful IPO. The IPO was priced at $15, raising $93 million. At the end of its first day of trading, the stock ended at $18.

Basically, the company develops technologies that enhance the speed of weak points in the telecom network. In other words, the company marries fiber optics and copper phone lines.

The company is ramping-up revenues. In the first six months of 2000, revenues were $12.93 million, which was up from $402,000 from the same period a year ago.

But there are definite risks. The competition is intense and the customer base is concentrated. The company also has a legal cloud, as it is involved with a lawsuit with Nortel regarding a patent.