busted tech IPO's... who will bounce back?

from Motley Fool 5 Busted Tech IPOs That Will Bounce Back



There was a time not too long ago when it was actually a good thing to get in on technology IPOs....Let me go over five busted IPOs -- tech companies that can now be had for less than their original IPO prices -- that I think have better days ahead.

The 5 are:
Boingo (wireless hot spots) IPO: $13.50 / 10/7 price = $6.87
Jiayuan.com (China's most popular dating site) IPO $11, 10/7 $8.06
Pandora (online streaming music) IPO: $16, 10/7 $13.11
Renren (China's leading social network site) IPO: $14, 10/7 $5.49
Yandex (Russia's leading search engine) IPO $25, 10/7 $19.82

Personally my vote is for Boingo (325k locations worldwide, the two leading wireless carriers are no longer selling unlimited data plans to new customers, + 13% growth in its latest quarter) and Pandora (new deal w/ automakers, (smartphones --> car audio connection) + still a ton of potential growth in online music streaming, especially internationally)
(Fyi I have no holdings in these positions)

More from the article...


Things will get better
All five companies continue to grow, even as their share prices contract. The market will eventually come around. Growth ultimately gets rewarded. It won't happen overnight, and vindication won't come for all five companies. However, it's a basket of stocks that I don't mind getting behind -- and I have gone on to give them all thumbs-up ratings in Motley Fool CAPS. Better luck as sophomores.

Monkeys, any other companies w/ busted IPO's that you're keeping your eye on?

 
AndyLouis:
IHAVEABIGHEART:
I hate BOINGO, they are ripping off customers, this company is a joke

yeah but are they profitable? and would you invest in them? Ripping off? well paid wifi is better than no wifi...

Basically they make you think that you're paying a one fixed fee to use the service and instead they turn it into subscription. When you realize that it is a subscription from your bank statement, it is pain in the ass to cancel it. A simple google search will show that internet is full of complaints about them. I don't understand why any business serious about its long term perspective would deceive their customers in a such way.

 
Best Response
Basically they make you think that you're paying a one fixed fee to use the service and instead they turn it into subscription. When you realize that it is a subscription from your bank statement, it is pain in the ass to cancel it.

sounds horrible, reminds me of that whole freecreditreport.com scandal awhile back, though I see they're still alive and kicking

I don't understand why any business serious about its long term perspective would deceive their customers in a such way.

How about comcast? Those shysters f-d up my bill almost every month it seemed. "No I did not order those adult movies!!!"

As investors should we separate ethics and profits when choosing companies to invest in? Or do you feel guilty investing in these companies? Obviously if its a sweatshop gold mining company in Sierra Leone I wouldn't dare, but if Boingo can make me me a little coin over the next year , their customer service complaints alone aren't going to keep me from clicking the "buy" button

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boingo is free cash flow positive but pandora is not. No clue about the other ones. On a valuation standpoint, both boingo and pandora can go much lower.

Boingo's last 10k's annual net income is 15.73, but its operating income is only 7.36 (some fudging went on here), assuming 35% taxes, net income should be about 4.784. current p/e based on T12M numbers are roughly inflated at least 100% in the same ballpark. Stock could go 40-50% lower. Although boingo doesn't have financing risk per se. Would not rate this a buy.

 

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