Focus on These Two Like a Laser Beam

Ben Holmes has the market covered: Sundays: This Week in IPOs Tuesdays: This Week's Secondaries Wednesdays: Upcoming Lockup Expirations Fridays: The Quiet Period

Boy, is it nice outside! I say this only because it's the truth and because I would love nothing more than to be out there groovin' in the sweet, sweet Colorado outdoors. But, there's work to be done...

As you probably know, I don't have much of anything nice to say about the effects of initial research coverage on IPOs exiting their quiet periods. There was a time when the stocks received a boost in price when the first buy recommendations were released. Nowadays, they just bleed and head for the floor. So much for the value of analysis. (For a primer on Quiet Periods, see my May 4 column.)

There are a couple of names in the list this week that are worthy of a slot on your stock-watch screen. New Focus (NUFO Quote), which had a fantastic first-day performance, continues to work higher. The story on this stock is good and the sector is hot. Whatever the analysts say, good or bad, this is a name that has made a lot of investors very happy lately.

iBeam Broadcasting (IBEM Quote) is another issue that has worked higher after its IPO, but not in a straight-up fashion. The stock closed up 4 points at 14 on its first day, then slid quickly back to its $10 issue price. After a week or so at that level, it has begun to climb back and closed Friday at 15 1/2. Not a moon shot, but gains are gains.

Whatever you do, remember the track record for recently recommended IPOs is terrible. Buy these stocks for the right reason -- because they're showing strength -- not because some overworked analyst tells you to.

And now my work is done...

Quiet Period End	Deal Name	Symbol	Lead Underwriter
5/29/00	ORCHID BIOSCIENCES INC	(ORCH:Nasdaq)	Credit Suisse First Boston
5/29/00	CROWN MEDIA HOLDINGS	(CRWN:Nasdaq)	Donaldson Lufkin & Jenrette
5/30/00	PARADIGM GENETICS INC.	(PDGM:Nasdaq)	Chase H&Q
5/30/00	GENOMIC SOLUTIONS INC.	(GNSL:Nasdaq)	UBS Warburg
6/6/00	SEQUOIA SOFTWARE CORP.	(SQSW:Nasdaq)	Lehman Brothers
6/11/00	NEW FOCUS INC.	(NUFO:Nasdaq)	Credit Suisse First Boston
6/11/00	IBEAM BROADCASTING	(IBEM:Nasdaq)	Morgan Stanley Dean Witter
6/12/00	US UNWIRED INC	(UNWR:Nasdaq)	Donaldson Lufkin & Jenrette
6/12/00	NOGATECH INC.	(NGTC:Nasdaq)	WR Hambrecht & Co.
Source ipoPros.com