Finally, Good Things to Report
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Increasing the price range? Remember that? Well, in the past few months, it has been a rare thing. But it did happen last week to Transmeta, which plans to have its IPO this week. And the increase was substantial - going from $11-$13 to $16-$19. This was impressive, given the fact that IBM said it would not use Transmeta's chip for one of its new laptops.
Okay, there were still some problems. There were a variety of withdrawals, including the postponement of Qualcomm's spinoff, it's Spinco division. Basically, Spinco's business includes circuit chips, integrated system software and the Snaptrack location-tracking technologies.
In fact, last month there were 48 withdrawals.
Despite this, we did see a great IPO from Optical Communications Products. Priced at $11, the stock soared to $17.88 on its first day of trading. In all, the company raised $116 million and the market cap hit about $1.83 billion.
It would not be surprising to see more strength from this stock, especially as Nasdaq rallies and so do the fiber optic stocks.
Actually, the strong performance of Optical Communications Products should bode well for another IPO this week: Luminent. This company develops sophisticated components for the metro area optical networks (kind of sounds familiar, huh?). The customer base is strong - with such biggies as Marconi, Cisco and Foundry Networks.
For the first six months of 2000, revenues increased 53.1 percent to $43.6 million. Net profits were $2.3 million.
The lead underwriter is CS First Boston and the price range is $13-$15 (the company intends to issue 12 million shares). The proposed ticker symbol is LMNE.