Sure, the IPO market has been white hot of late, but it doesn't hurt to go public on a day when the rest of the market is on fire.
-- which, as its name suggests, registers domain names -- was lately up 36, or 150%, at 60, and its jump may have contributed to gains in
, which was lately up 39 1/8, or 12%, at 359 1/8.
Fellow market debutante
, a provider of Internet infrastructure solutions to major telecom providers in China, was recently up 75 1/2, or 315%, at 99 1/2.
, a provider of software that allows businesses to rapidly deploy e-business applications, was lately up 45 1/2, or 190%, at 69 1/2 on its first day public. IPO
, a developer of e-marketing campaign management software, was up 8 7/8, or 49%, at 26 7/8 recently, though it traded as high as 37 earlier in the day.
Richard Peterson, a market strategist with
, doesn't see a slowdown in the IPO market anytime soon. He says that people have the money -- whether it's from taxes, bonuses or profits from selling other stocks -- and that they'll keep chasing IPO deals.
But Peterson offers some IPO facts that should interest investors. Of the 543 companies that went public last year, only 98 deals ended the year at levels lower than their offering prices. But, as of yesterday, 133 out of those 543 are trading lower than their offering prices. This year, 12 of the 83 companies that have gone public are trading lower than their offering prices. Peterson concludes that if a stock falls below its offering price, it's likely to continue to slide over the near term.
Conversely, stocks that perform well early on are likely to continue to perform well. He says that, last year, 85 deals were between 50% and 100% higher than their offering prices after their first month public. Of those 85, 62 have added to their first-month gains. Granted, market conditions have had a lot to do with many stocks' performances, but it makes sense that success in the first few weeks of trading can indicate a lot about the future.
Checking tech indices,
TheStreet.com Internet Sector
index was up 46.19, or 4%, at 1210.30, near its all-time high of 1218.47 made on Jan. 3.
TheStreet.com New Tech 30 was up 63.83, or 8.2%, at 845.94.