Monday, December 11, 2006

I brought over my IPO rating machine

The IPO rating machine is complete! I built it out of spare blender and car parts. Now it just needs some fine tuning. The first few IPO's to run through it will be test subjects to see if it needs some adjusting. Bascialy the "machine" rates IPO's on a scale of 1 to 10 based on 6 factors. Lastly there is a human element which simply puts a cherry on top, or no cherry on top. Here is our first test subject: GUID
Total score of 6 or above worth a look. 5 million shares: Good float size_____8 The proceeds will be used for general corporate purposes, including working capital, capital expenditures and potential acquisitions of complementary businesses, products and technologies: Good/Average use of procceds_____6 Lead Underwriters: Morgan Stanley, Lehman Brothers, Wachovia Securities: Good/Great underwriters_______8 Financial Highlights: Revenues were $39.4 million for the nine months ended September 30, 2006 compared to $27.2 million for the nine months ended September 30, 2005, an increase of $12.2 million or 44.9%... Cost of revenues was $11.2 million for the nine months ended September 30, 2006 compared to $8.1 million for the nine months ended September 30, 2005, an increase of $3.1 million or 37.9%. Gross profit as a percentage of revenues was 71.6% and 70.2% for the nine months ended September 30, 2006 and 2005, respectively: Financials Average______5 Sector IPO performance:_____7 Priceing: TBD (1 low 5 midrange 8 top of range 10 above range....of course too far above range relative to value will be assesed individualy) Total score without priceing 6.8 Please coment whether you like this IPO or not. Comments will be used to determine cherry or no cherry on top. Results will be tallied the night of priceing.

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