IPODEX Shows Market Strength Support

IPODEX shows that this basket of stocks that made the jump to public life this year was up 261% from IPO pricing to March 18. Two of the stocks, Vignette (NASDAQ:VIGN) and WebTrends (NASDAQ:WEBT), hit new all-time highs.

Overall, IPODEX stocks, however, traded off -30% from their highs, but 415% off the lows. The lows show where individual invesors could have bought the stock, so it partially mitigates the reaction of many that IPOs at IPO price are difficult.

My analysis indicates, however, that the lowest low was still 33% better than the IPO price (with Prodigy).

Notably all these stocks were up triple digit from offering price. While individual investors don’t often get a chance to buy at that price, it shows how inefficient the pricing of IPOs is.

























































































































Company

Stock

IPO share

18-Mar

Change from

Share

18-Mar

name

Symbol

price

close

IPO

high

% of high

MarketWatch

MKTW

$ 17.00

$69.00

306%

$ 130.00

-47%

Healtheon

HLTH

$ 8.00

$38.56

382%

$ 48.63

-21%

Verticalnet

VERT

$ 16.00

$93.00

481%

$ 120.00

-23%

Allaire

ALLR

$ 20.00

$51.63

158%

$ 69.00

-25%

Pacific Internet

PCNTF

$ 17.00

$46.00

171%

$ 88.00

-48%

Prodigy

PRGY

$ 15.00

$38.50

157%

$ 50.63

-24%

Vignette

VIGN

$ 19.00

$69.00

263%

$ 79.00

-13%

WebTrends

WEBT

$ 13.00

$45.13

247%

$ 59.00

-24%

 

TOTAL

$ 125.00

$ 450.81

261%

$ 644.25

-30%

 

AVERAGE

$ 15.63

$ 56.35

261%

$ 80.53

-30%

 

MEDIAN

$ 16.50

$ 48.81

196%

$ 74.00

-34%

Leading the list of all gainers was VerticalNet with a 481% run to $93.

On deck to go public is iVillage (NASDAQ:IVIL), which doubled its price per share as demand outstrips supply.

Moves behind the moves:

  • Theglobe.com inks a deal with Marketwatch (NASDAQ:MKTW) to bring Marketwatch content to theglobe.com’s Web users. These are parts of the overall pieces coming together in the Web: content meets community.
  • Pacific Internet (NASDAQ:PCNTF) gets coverage initiated by Lehman Bros. with a “buy.” I think the Asian ISP holds some potential in the market given its background and parent company, a huge conglomerate.
  • One of 1998’IPOs that lingered took off as Netgravity (NASDAQ:NETG) based on its new mantra to support ecommerce with its SiteMinder product. I still see Netgravity as more software driven.
  • A slew of IPOs wait in the wings. The one thing the more than 30 issues brought about was just how widespread the Internet is acoss business. VerticalNet, for example, is a far dirrerent animal than Marketwatch.com. Both have valuations that I feel comfortble with at this point.

    Accolades for Internet
    Stock Report
    :

    "Fresh and provocative" -CBS Marketwatch, who named
    Steve Harmon one of the top Internet stock analysts and only independent one honored

    "I am a huge fan of Steve Harmon’s analysis"
    -Kleiner Perkins’ John Doerr

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