Tech IPO Constant Isn't Worth Its Price Tag

Nearly every week seems to mark the birth of at least one new tech IPO star, but a close look at recent debutante Constant Contact shows that not all are burgeoning with the same promise.

Constant Contact has spent years building up a strong business and market footing in an overlooked sector. Its reliance on a Web-based, on-demand product seems to resonate among not-so-tech-savvy clients who want an easy way to keep in touch with their own customers.

Like iMergent, whose stock has been volatile over the past couple of years, Constant Contact offers a hand-holding relationship to small companies, from wine stores to individual "power sellers" on eBay, allowing them to use a browser to send email updates and newsletters to contact loyal customers. ...