Daily Archives: March 8, 2007

Cramer’s SELL BLOCK: Recent IPO Reviews

It’s Thursday, so on CNBC’s MAD MONEY tonight Jim Cramer featured his SELL BLOCK where he reviews some past picks and says to Sell or to Stick With It. 

Cramer says that some of his recent picks in IPO’s he wants to review Clearwire (CLWR).  Selling Fortress (FIG) to switch into Goldman Sachs (GS).  He would also Sell Melco PBL Entertainment (MPEL) in Macau as he was wrong and it is down 16% and IPG Photonics (IPGP) and that is down 21% from the first day’s close.  Cramer likes trying to get in on the IPO pricing because you have a lower chance of getting hurt.

Cramer does have ones that he likes from the recent IPO pool: Switch & Data (SDXC) is one he likes right now that he would still buy.  Aerovironment (AVAV) and Opnext (OPXT) are ones that you can buy on weakness.

Jon C. Ogg
March 8, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: March 8, 2007 – 6:48 pm in Cramer, IPOs

Cramer Likes Roto-Rooter & Hospices

Chemed (CHE) is a stock that Cramer actually likes among the rubble.  CHE is divided into two segments that aren’t related: one is Roto-Rooter drain cleaner and one is Vitas that runs hospices.  Neither operation is related but they both make lots of money.  It has exited the Medicare related hospices to avoid caps, and its earnings power is there.  They beat earnings expectations and they raised guidance.  Cramer said the company didn’t even envision being this popular.  It jumped $7.00 on the news and the market sell-off took off about $2.00. He thinks this one can run and he thinks it will get its momentum back.

On a call-in Cramer did say that Service Corp (SCI) in the funeral area is a winner and it is close to a yearly high.  Cramer Also thinks that UnitedHealth (UNH) is one that he feels better about than he has ever felt on it.

Jon C. Ogg
March 8, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: March 8, 2007 – 6:21 pm in Cramer

Cramer’s Pawn & PayDay Advance Winners

Cramer on tonight’s MAD MONEY said that the blowup in sub-prime might actually create a boom for pawn brokers.  Hmm, this sound familiar…….  I posted a 15 SECOND LINE DEFENSIVE STOCKS last week and Cash America (CSH-NYSE) was the one I noted as the beneficiary there. 

Cramer thinks the first way to play lower-income not being able to borrow is via pawn shops.  He likes Cash America (CSH) as his pick…..hmm, sounds familiar.  CSH traded up 2% atfer Cramer touted this one.  Payday cash advances are another way to play these, even if the rates are super-high.  The best play according to him here is Advance America (AEA).  Cramer said that some states have been trying to limit these and there has been pressure to stop the regulation from teh people that need to borrow. AEA traded up 3% after Cramer touted this one.

Jon C. Ogg
March 8, 2007

Posted on: March 8, 2007 – 6:10 pm in Cramer

Aerovironment Earnings on Autopilot

AeroVironment, Inc. (AVAV-NASDAQ) reported financial results for the fiscal 2007 third quarter: Total revenue up 30% to $46.3 million; Income from operations up 111% to $13.2 million; Net income up 102% to $8.9 million, or up $0.28 per diluted share to $0.57.

As of JAN 27 it carried backlog of $43.2 million, compared to $79.7 million as of April 30, 2006, and $48.2 million as of January 28, 2006.  As far as 2007 guidance it currently expects to achieve total fiscal year 2007 revenue growth of between 20% and 25% from fiscal year 2006 levels, with an operating income margin between 15% and 16%.

We are refraining from posting earnings estimates due to the fact that there are discrepancies because it is such a new company after its IPO in the second half of January.  Shares had traded up to $24.00 but have slid to under $21.00 recently.  It closed at $21.43, up $3%, today but we have not seen active trading in it after-hours.  This appears solid, but tracking these newer post-IPO companies right after earnings is a bit of guesswork.

Jon C. Ogg
March 8, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: March 8, 2007 – 4:22 pm in Defense, Earnings

National Semi Still In The Rough

National Semi  (NSM) reported revenue fell 21% to $431 million.

According to MarketWatch "quarterly net income tumbled 45% from a year ago amid soft demand for its chips used in cell phones, computers, and other electronics."

Well, it is a semiconductor company, so join the club.

Douglas A. McIntyre

Posted on: March 8, 2007 – 4:21 pm in Semiconductor

Gmarket Auctions Off Its Own Earnings

Gmarket Fourth Quarter 2006 Revenues Increased 67 Percent to $51.6 Million Year Over Year and Diluted EPS Increased to $0.13 From $0.09 in Fourth Quarter 2005; ESTIMATES were $0.15 to $0.16 and $51.5 to $51.7 million.

The Company’s gross merchandise value ("GMV"), which represents the total value of all items sold on Gmarket’s website, increased by 53% to $737.4 million (Won 682.4 billion) for the fourth quarter of 2006 compared to $480.8 million (Won 445.0 billion) for the same period in 2005.  Transaction fee revenues for the fourth quarter of 2006 were $31.5 million (Won 29.1 billion), representing a 30% increase from $24.2 million (Won 22.4 billion) for the fourth quarter in 2005. Advertising and other non-transaction revenues for the fourth quarter of 2006 were $20.1 million (Won 18.6 billion), representing a 200% increase from $6.7 million (Won 6.2 billion) for the same period in 2005.  During the fourth quarter of 2006, the Company’s registered user base grew to approximately 11.0 million, a 9% increase from 10.1 million registered users at the end of the third quarter of 2006. In addition, the Company averaged 17.1 million monthly unique visitors in the fourth quarter of 2006, a 22% increase from 14.0 million unique visitors during the fourth quarter of 2005.

The guidance is not really noted except for how much they plan to clear in merchandise:  Gmarket expects GMV for full year 2007 to range from $3.3 billion (Won 3.1 trillion) to $3.8 billion (Won 3.5 trillion). For the first quarter of 2007, Gmarket expects GMV to range from $767 million (Won 710 billion) to $811 million (Won 750 billion).

GMKT traded up more than 4.5% to $19.89 on the day but shares are down more than 14% at $16.95 in after-hours.  We’ll have to see if they give any more formal guidance or if this is it. 

Jon C. Ogg
March 8, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: March 8, 2007 – 4:10 pm in Internet

The 52-Week Low Club

Vonage (VG) made the list today. The stock hit a low of $4.50 today after trading at $17.25 the day of it IPO. At least the company had an excuse. It lost a patent lawsuit to Verizon (VZ) and was ordered to pay the phone giant $58 million.

McClatchy (MNI) The newspaper chain had its own excuse today. The stock hit $35.39 as S&P put it on negative credit watch due to declining advertising revenue across the newspaper industry. The 52-week high was $53.24.

Micron (MU) The prices for flash memory keep declining and Micron goes right down with them. It hit $11.27 today down from a 52-week high of $18.65.

Constellation Brands (STZ) Selling wine used to be a good business, but there appears to be a glut in Australia. At least according to Constellation. Since issuing a bleak forecast, the share keep falling and today hit $18.83 down from a 52-week high of $29.17.

Hollis-Eden Pharma (HEPH) According to TheStreet.com HEPH shares fell "after the Department of Health and Human Services said Neumene, a treatment for acute radiation syndrome, is technically unacceptable." The shares dropped 32% and got as low as $2.81. The shares have a 52-week high of $7.49.

Distributed Energy Systems (DESC) Shares in the alternative energy company fell almost 30% to a 52-week low of $1.93. The company reported a large loss and was downgraded by Merriman Curhan and Ardour Capital. The 52-week high was $7.51.

Insmed (INSM) The company entered a litigation settlement with Genentech (DNA) and Tercica (TRCA). The biopharmaceutical company will cut 34% of its workforce to save dwindling cash. Stock fell to $.76 from a 52-week high of $2.26.

Transaction System Architects (TSAI) The online payment software company said it would have to restate numbers due to problems with stock option grants from 1995 to 2002. The company also missed Wall St. expectations for its earnings. The stock was down 6% at one point to a 52-week low of $28.39 against a 12-month high of $43.

Progressive Gaming International (PGIC) Revenue fell in the fourth quarter at the maker of casino software. Goldman Sachs downgraded the stock. It hit a bottom of $6.37 down from a 52-week high of $11.40.

Douglas A. McIntyre

Posted on: March 8, 2007 – 4:05 pm in HI/LOW

Cramer on More Sub-Primes

On today’s STOP TRADING segment on CNBC, Jim Cramer discussed the rumors making the rounds about New Century (NEW) potentially filing for Chapter 11 protection after an activist hedge fund advisor quit the board of directors.  Shares were down 20% on more than 36 million shares.  This has also spilled over into DJIA stocks.  Cramer said that this is a hangnail to the market and you shouldn’t be selling the other unrelated stocks and sectors on this.  He even said the hits that some companies took to Long Term Capital in the 1990’s created a buying opportunity.  Cramer has been saying that one of the sub-prime lenders will fail, but this is de-linked from the market. 

On Camden Properties Trust (CPT) Cramer sees better opportunities since REITs are up so much.  He does like JCPenney (JCP) and he thinks it will see $84.00 tomorrow from $81.00 today.

Jon C. Ogg
March 8, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: March 8, 2007 – 2:47 pm in Cramer

RealNetworks And DIVX: Hard Times For Multimedia

RealNetworks (RNWK) hit a 52-week low recently. The stock, at $7.71, is down about 35% in the last three months. DIVX, another provider of multimedia software is down about 30% over the same period, and at $18.65 is very near its low since going public.

Both companies are profitable. In the last quarter, Real had operating income of $52 million on revenue of $125 million. Divx (DIVX) had income of $7.4 million on revenue of $16.7 million. Both companies continue to grow.

What appears to have happened is a rising concern that, with software formats for devices as diverse as the iPod and satellite radio, market share and pricing for suppliers will come under increasing pressure.

And, the valuations are coming down. Divx now trades at about 10x sales. For RealNetworks that number is only 3x revenue. Content platforms still appear to carry higher valuations that the software that drives them. Even after a huge stock drop and massive losses, Sirius (SIRI) trades at over 7x sales. And, unlike Real and Divx, Sirius has never made a dime.

Douglas A. McIntyre can be reached at douglasamcintyre@247wallst.com. He does not own securities in companies that he writes about.

Posted on: March 8, 2007 – 2:45 pm in HI/LOW

Why Trading is a Zero-Sum Game

From Investment Intelligencer

Stock_exchange I write a series for Slate called "Bad Advice," in which I take common but poor investment advice and explain why it’s bad.  One of my consistent themes is that, in most cases, the more you trade, the worse you do.  The logic behind this is that, unlike investing, trading is a zero-sum game: every dollar "won" by one trader must be "lost" by another.  (When you throw in transaction costs, moreover, trading becomes a negative-sum game: most traders lose.)

One Slate reader argued that this logic was bogus, that trading is NOT a zero-sum game, because if you buy a stock at $5 and it goes to $10, the $5 you make does not come out of someone else’s pocket.  The reader is missing an important distinction, but the response is common, so here’s a longer explanation.

Read More »

Posted on: March 8, 2007 – 1:05 pm in Research

How Badly Did Clearewire Hurt The IPO Market?

Clearwire (CLWR-NASDAQ) has done what some of the wildly bullish backers thought would not occur.  It has traded under the $25.00 IPO price today, which means technically that this HOT IPO traded as a BUSTED IPO.  It can close higher or lower than that $25.00 pricing and it will still have done some damage either way to other IPO’s on deck.  There are few that expect this one to fall apart because the need to raise extra cash has been telegraphed from the start, but the levels it opened at and the after-market action may take out some excitement.   The trading band in it is now $24.46 to $27.95 since the open. 

We had noted ahead of time that $28.00 seemed to be the prevailing opening level and it appears that $27.25 was the opening price.  That is pretty close, but some are already thinking this was a bit of a disappointment, and that was before the drop to under $25.00.

For this IPO to drop like this, it is going to put a lid on many of the other IPO’s.  Two "HOT" issues that are on the docket for tomorrow are Xinhua Finance Media and SourceFire.  We’ll follow up as these price, but if the HOT IPO turns out to not be so hot and even trade as a busted deal then it will put a lid on the appetite for other IPO’s in the immediate days after.

Here is the backgrounder for Xinhua Finance Media Ltd. (XFML-NASDAQ).  The fact that (Shanghai) China was to blame for most of the last sell-off, so the China-tie may also mute this one.  We still think this one has the leadership and is in the right spot to make a long-term run for those who can put on the rose-colored shades that look beyond the immediate time horizon.

Here is our note on SourceFire (FIRE-NASDAQ). 

Do not take this to be an interpretation that the CLWR IPO has killed the IPO market, but it will probably affect the appetite for these other two issues tomorrow and will be used as a reference point by any nay-sayers.  CLWR may very well close higher, but we already noted that calling UP/DOWN is the same as a coin toss today.  This just shows that certain IPO’s are not always a shoe-in like some traders hope.  As noted, this one has all the necessary earmarks for it to become a battleground stock.

The "IPO ETF" called the First Trust IPOX-100 Index (FPX ticker) is actually up 1$ at $22.47 for the day.  This one is very thin volume and may not an accurate representation.

Jon C. Ogg
March 8, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: March 8, 2007 – 12:18 pm in IPOs

Clearwire Muted Premium Post-IPO

Clearwire (CLWR-NASDAQ) opened at 10:40 AM EST, and while it is up from the pricing it is not exactly setting any records and some of the wildly bullish minions might be a bit disappointed in the initial trading premium.  Shares priced at $25.00 and have traded between $26.13 and $27.95 in the few minutes since the open.  We had noted that $28.00 seemed to be the prevailing opening level and it appears that $27.25 was the opening price.  That is pretty close, but some are already thinking this was a bit of a disappointment.

The reason for this is that the premium doesn’t give a huge profit for the IPO-Flippers for an IPO that had so much hype behind it.  We in no way are comparing this one to a particular VoIP IPO that came public in 2006 in a botched IPO because that does not look to be the case here at all.  This was just one that some were probably hoping for more. 

Perhaps all of the warnings about the company needing to raise more and more funds even in the near future may have contributed.  Maybe it was the bump in shares from 20 million to 24 million and the bump in the overallotment.  In truth this company has something great to offer, so now it will all boil down to what the public says the value of it is.  As of now, the company is sitting with a market cap in excess of $4 Billion.  Some are saying that it will take another $4 Billion to really deploy its WiMAX cloud in the US.

Here was Cramer’s original IPO playbook on it.  The potential stock and debt sales coming on an accelerated basis may keep a bit of a lid on it, but the company is in the best spot for a pure-play stock in the WiMAX sector.  If I didn’t know better, this sounds like it has all the earmarkings of a true battleground stock for the longs and shorts.  It will take about 30 days before the research reports start coming out from the underwriters, so keep your eyes open for research on it around April 7 to April 9.

Picking how this one will close from here is probably as accurate as a coin toss.  In the first 20 minutes CLWR traded roughly 10 million shares.

Jon C. Ogg
March 8, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: March 8, 2007 – 11:05 am in IPOs

Clearwire Times Set for Early Morning IPO

Clearwire’s (CLWR-NASDAQ): NASDAQ has released the times and the initial public offering of Clearwire will be released on NASDAQ today for quotation at 10:25 ET and trading at approximately 10:40. 

After talking with various traders ahead of the IPO this one was perceived to open around a $28.00 level, but now the market has popped again.  This open price talk would have been higher last week, but the higher share count and the market slide we saw last week are likely keeping this one fromn getting too out of control.  Keep in mind on the pricing that these often change and are probably a bit more financial voodoo than they are an exact pricing science. 

The company bumped up its 20 million share offering to 24 million shares and the $25.00 pricing was at the top of the $23.00 to $25.00 range.  We had noted that it was likely to either see a higher price, or a bump up in the shares, or both.  So the pricing was at the top of the range, but the shares were raised by 20%.  The underwriting was led by Merrill Lynch & Co., Morgan Stanley and J.P. Morgan Securities, Inc. as bookrunners. Wachovia Capital Markets, LLC, Bear Stearns & Co. Inc., Citigroup Global Markets Inc., Jeffries & Company, Inc., Raymond James & Associates, Inc., Think Equity Partners LLC and Stifel, Nicolaus & Company Incorporated are acting as co-managers.  Underwriters have a 3.6 million share overallotment instead of the 3 million shares originally indicated, and it is a safe bet to assume that the company will be ‘overallotting’ those.

Keep in mind that the company has already disclosed that it will need to raised additional capital in the markets in the near future to continue its build-outs. Here was Cramer’s original IPO playbook on it.

Jon C. Ogg
March 8, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: March 8, 2007 – 10:06 am in IPOs

TECD: Tech Data

By William Trent, CFA of Stock Market Beat

Tech Data Reports Fourth-Quarter and Fiscal-Year 2007 Results: Financial News – Yahoo! Finance

Net sales for the fourth quarter ended January 31, 2007, were $6.1 billion, an increase of 10.7 percent from $5.5 billion in the fourth quarter of fiscal 2006 and an increase of 12.7 percent compared to the third quarter of the current fiscal year.

The numbers were well ahead of the $0.58 consensus number, which is partially explained by the company’s very low margins – it doesn’t take much of a margin improvement or sales increase to have a large effect on earnings.

For the fourth quarter of fiscal 2007, operating income was $65.5 million, or 1.07 percent of net sales. This compared to operating income of $55.3 million, or 1.00 percent of net sales in the fourth quarter of fiscal 2006.

You see – going from razor-thin margins to wafer-thin margins can help a lot.

As far as the health of technology spending, our main interest when looking at Tech Data (whose status as one of the largest tech distributors makes it a decent read on the overall industry,) it didn’t look so hot.  Excluding any currency effects  sales were up about 5% year/year. Nothing to write home about (though Dell would take it.) Overall, it supports what we’ve seen throughout the industry – a mid-single digit growth rate, roughly in line with nominal GDP growth. Given the double-digit long-term growth estimates we see provided for many tech companies (Yahoo shows 10% for TECD and 15% for the distributors as a whole – what a laugh) investors are presumably hoping for better.

They won’t get it. The company’s outlook:

For the first quarter ending April 30, 2007, the company anticipates net sales to be in the range of $5.20 billion to $5.35 billion. This assumes year-over-year mid-single digit growth in the Americas region and flat year-over-year growth in Europe on a local currency basis. The company also anticipates an effective tax rate for the first quarter of fiscal 2008 in the range of 42 percent to 44 percent.

http://stockmarketbeat.com/blog1/

Posted on: March 8, 2007 – 10:00 am in Research

SNDK Upgraded at Matrix

From Ticker Sense

Matrix upgraded SanDisk (SNDK) from Hold to Strong Buy this morning.  According to BARR ratings, Matrix has the second best record on SNDK over the past year.  Below are their historical calls on the stock.

Sndkmatrix

http://www.tickersense.typepad.com/

Posted on: March 8, 2007 – 9:57 am in Research

Consecitve Up and Down Days

From Ticker Sense

It has been awhile since we looked at which stocks have been up or down the most consecutive days.  Below we list those S&P 500 stocks currently having the longest winning and losing streaks.  FLR, GT and SHLD were the only three on the up days list that survived last Friday’s decline, and they have continued higher each day this week.  Seven stocks in the index have been down for five consecutive days, with FD having performed the best on the sixth day on prior occurrences.

Updown308

http://www.tickersense.typepad.com/

Posted on: March 8, 2007 – 9:55 am in Research

As McDonald’s Same Store Sales Rise, Starbucks Sweats

McDonald’s same store sales rose 5.7% last month. In the US, the numbe was 3.1%. A big part of the increase is attributed to a new breakfast menu (including designer coffees) and its late night store hours.

While the founder of Starbucks writes memos about how great memory lane is and laments the good old days when the employees brewed coffee using their own blood, perhaps he could cast an eye over at the burger chain. He may want to review their breakfast menu. He can walk into any McDonald’s to see what is selling.

And, he might want to look at keeping his stores open all night. It works for the burger guys, and people need that coffee to stay awake.

Douglas A. McIntyre

Posted on: March 8, 2007 – 9:32 am in Food

Clearwire Open Price Chatter

In a call placed into NASDAQ the first IPO indication times have not yet been released for when the Clearwire (CLWR-NASDAQ) IPO will hit the tape.  After talking with various traders ahead of the IPO this one is perceived to open around $28.00, but who knows for sure.  The initial talk would have likely been higher last week, but the higher share count and the market slide we saw last week are likely keeping this one fromn getting too out of control.  This has also been one of the most telegraphed deals out there.  Keep in mind on the pricing that these often change and are probably a bit more financial voodoo than they are an exact pricing science.  The company bumped up its 20 million share offering to 24 million shares and the $25.00 pricing was at the top of the $23.00 to $25.00 range.

The underwriting was led by Merrill Lynch & Co., Morgan Stanley and J.P. Morgan Securities, Inc. as bookrunners. Wachovia Capital Markets, LLC, Bear Stearns & Co. Inc., Citigroup Global Markets Inc., Jeffries & Company, Inc., Raymond James & Associates, Inc., Think Equity Partners LLC and Stifel, Nicolaus & Company Incorporated are acting as co-managers.

This is one we and many others have covered extensively.  We had noted that it was likely to either see a higher price, or a bump up in the shares, or both.  So the pricing was at the top of the range, but the shares were raised by 20%.  Keep in mind that teh company has already disclosed that it will need to raised additional capital in the markets in the near future to continue its build-outs.

Underwriters have a 3.6 million share overallotment instead of the 3 million shares originally indicated, and it is a safe bet to assume that the company will be ‘overallotting’ those.  Here was Cramer’s original IPO playbook on it.

Everyone who has been around and seen hot IPO’s and IPO’smisrepresented knows that pegging these ahead of time is relying on toomany variables.  We’ll see how high this one opens, but the weak market may be what kept the pricing from getting much higher.

Jon C. Ogg
March 8, 2007

Posted on: March 8, 2007 – 8:50 am in Consumer Electronics, IPOs, Internet, Technology Companies, Wireless

Wal-Mart Disappoints, Again And Again. Time To Close Stores

Well, Wal-Mart (WMT) missed its own ultra-low projection for February same-store sales. The figure rose .9% compared to a projected 1% to 2%. While the company’s Sam’s Club did fine, sales at the flagship Wal-Mart branded stores were up only .4%.

Wal-Mart has now tried everything to fix its US growth problem, but the company is now getting it real move up in revenue from markets like Mexico and China. The huge retailer has changed the look of its stores. It has put in more up-scale merchandise. It has moved around management in its retail and marketing operations.

Wal-Mart has even begun a program to offer free shipping to Wal-Mart stores for customers who buy products online. Perhaps those customers will buy something else when the hit the store for their delivery.

The bottom line is this. Wal-Mart has too many stores in the US market. Target (TGT) is still projecting sales of 4% to 6% per month, and more niche operations like CostCo (COST) are also seeing same store figures increase 3% to 6% most months.

Wal-Mart is now large enough so that it competes with itself. With 1,100 discount stores and 1,900 supercenters across the US the opportunity for grow at the store unit level is gone.

Douglas A. McIntyre can be reached at douglasamcintyre@247wallst.com. He does not own securities at companies that he writes about.

Posted on: March 8, 2007 – 8:24 am in Retail

Clearwire Bumps Up Shares in IPO Pricing

Clearwire (CLWR) is going to debut today in what is expected to be the biggest IPO so far this year.  Clearwire is Craig McCaw’s WiMAX play that has garnered more coverage than most IPO’s.  The company bumped up its 20 million share offering to 24 million shares and the $25.00 pricing was at the top of the $23.00 to $25.00 range.

The underwriting was led by Merrill Lynch & Co., Morgan Stanley and J.P. Morgan Securities, Inc. as bookrunners. Wachovia Capital Markets, LLC, Bear Stearns & Co. Inc., Citigroup Global Markets Inc., Jeffries & Company, Inc., Raymond James & Associates, Inc., Think Equity Partners LLC and Stifel, Nicolaus & Company Incorporated are acting as co-managers.

This is one we and many others have covered extensively.  We had noted that it was likely to either see a higher price, or a bump up in the shares, or both.  So the pricing was at the top of the range, but the shares were raised by 20%.  Keep in mind that teh company has already disclosed that it will need to raised additional capital in the markets in the near future to continue its build-outs.

Underwriters have a 3.6 million share overallotment instead of the 3 million shares originally indicated, and it is a safe bet to assume that the company will be ‘overallotting’ those.  Here was Cramer’s original IPO playbook on it.  We’ll see how high this one opens, but the weak market may be what kept the pricing from getting much higher.

Jon C. Ogg
March 8, 2007

Posted on: March 8, 2007 – 8:24 am in Consumer Electronics, IPOs, Internet, Technology Companies, Wireless