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Earnings, IPOs, and the like

by Mike Masnick

Fri, May 22nd 2009 2:07pm




Filed Under:
ipos

Companies:
opentable


OpenTable IPO Shows That Dumb Cash Is Starting To Look For New Investment Vehicles

from the good-or-not? dept

There's been lots of buzz in Silicon Valley thanks to OpenTable having a 1999-style IPO, where the stock popped 70% on the first day (which, means that OpenTable effectively left a huge chunk of change on the table). But, of course, many people are asking if this finally means that IPOs can come back in fashion for venture-backed startups. Just a few weeks ago, we discussed how some believed that tech IPOs were primed to come back, though I was (and still am) skeptical. As the first link above shows, looking at OpenTable's financials makes you wonder how anyone would invest at the dollar value it hit. It makes little sense. So, this could just be an anomaly, as investors who have been sitting on cash for too long and are desperate to find different places to dump it got excited about a "new" tech IPO. But, unless the companies going public have better fundamentals, it seems like they'll start finding better places to put their cash. Instead, this seems like those sitting on too much cash venting a little steam just because.

6 Comments | Leave a Comment

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  1.  
    identicon
    AnonCow, May 22nd, 2009 @ 3:16pm

    It will be well under $10 by the end of the year or earlier if they miss their next quarter's number.

    How soon after an IPO before you can short it?

     

    [ reply to this | link to this | view in thread ]

  2.  
    identicon
    Ivan, May 22nd, 2009 @ 3:22pm

    They're cashing out:)

    I work for the competition...I've seen lots of postings as to why they're raising money and whether or not the stock will go up. Their website rocks, their Iphone app is pretty impressive, they definitely have the business traveler in their pocket. Their weakness is centered around their hardware. Who needs hardware in the internet world? There are 4 or 5 web-based systems like ours springing up around the nation. We don't use hardware. No hardware = no support costs = lower rates = competition.

    As soon as restaurants realize OT is taking taking away traffic from their website (why go back to the restaurant website?) by converting the restaurant's website visitors to theirs and charging them for it at the same time...there will be some backlash. We fit the replacement bill nicely;)

     

    [ reply to this | link to this | view in thread ]

  3.  
    identicon
    Techsupoort, May 25th, 2009 @ 11:09pm

    RE:

    Their website rocks, their Iphone app is pretty impressive, they definitely have the business traveler in their pocket.

     

    [ reply to this | link to this | view in thread ]

  4.  
    identicon
    Kiley Austin-Young, May 31st, 2009 @ 10:39am

    Re: Shorting OPEN

    Shares can't be lent by the underwriter for 30 days. However, if your broker has shares to lend you can short. I'm currently short OPEN with TradeStation.

     

    [ reply to this | link to this | view in thread ]

  5.  
    identicon
    Gordon Gekko, Jun 13th, 2009 @ 5:41pm

    Re: Re: Shorting OPEN

    No you're not. I have a premiere account with TS. SEC forbids shorts on IPOs for the first 30 days.

     

    [ reply to this | link to this | view in thread ]

  6.  
    identicon
    frank, Feb 7th, 2010 @ 11:00am

    Re: They're cashing out:)

    Hi, Ivan...I would like to have a conversation with you. If you can get in touch with me we cann arrange a ccall: franmartin@gmx.net
    br

     

    [ reply to this | link to this | view in thread ]


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