This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Shorts Slap HandHeld

Normally, investors would have little reason to mention tiny HandHeld Entertainment (ZVUE) in the same breath as Internet powerhouse Google (GOOG).

As it turns out, however, the two companies share some family ties -- a fact that isn't lost on HandHeld fans.

By now, the Google story is quite familiar. Two college buddies, Sergey Brin and Larry Page, established the wildly popular Internet search engine and then -- shunning big investment banks -- took the company public through an unusual auction-based initial public offering. They became instant billionaires. Moreover, they made investors everywhere rich, as Google shares rose fivefold in just two-and-a-half years on the market.

Page's older brother, Carl, had by then enjoyed some Internet-related success of his own. He founded eGroups and agreed to sell it in June 2000 to Yahoo! (YHOO - Get Report) for more than $425 million.

Then Carl Page went on to smaller things. In 2003, he became chief technology officer of HandHeld, a maker of discount downloading devices struggling to compete in a cutthroat world now dominated by Apple's (AAPL) iPod.

Wall Street showed little interest in this particular Page-backed venture. In a strategy often adopted by desperate upstarts, HandHeld went public last year through a reverse merger with a shell company and relied on PIPE deals for capital. PIPEs, or private investments in public equity, typically force cash-strapped companies to sell their shares at a steep discount.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
GOOG $555.36 -1.70%
YHOO $44.47 -0.11%
ZVUE $0.00 0.00%
AAPL $132.17 1.50%
FB $82.25 0.88%

Markets

DOW 18,073.64 -6.50 -0.04%
S&P 500 2,114.74 -2.95 -0.14%
NASDAQ 5,071.74 -20.3450 -0.40%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs