New Internet IPO

RedEnvelope starts trading today.

[lazerzubb]

From what i can remember this is the first "real" internet IPO this year (Also starts trading this year), i bet you a lot of internet companies will be watching how it goes, RedEnvelope will begin trading today at 14$ a share and 2.2 million shares.

Press Release [biz.yahoo.com]

Follow it on Yahoo finance [finance.yahoo.com]

From Forbes article [forbes.com]

RedEnvelope's reception by the market will set the tone for technology and Internet companies shut off from public funding since the end of 2000.

Two Internet IPO's who it's getting hot in here [marketwatch.com]

[midwestguy]

Wow. According to the Forbes article, RedEnvelope lost "just" $7.1 million on $70.1 million of revenue for the fiscal year ended March 30.

So...even though they apparently lose ten cents on every dollar of sales, guess with all that IPO money, they can really go to town and make it up on volume! Woo hoo!

Will the wonders and wizards of Wall Street ever cease (and desist)? Not while their customers have any money left to chisel away at, IMO.

And I wonder if those are GAAP or "EBITATA" losses.

Also: Please don't take this as a slight at the post or at you, please. I'm just taking a swipe at the Wall Street crowd who I don't care for. The SEC documents RedEnvelope had to file might prove interesting reading, as might their ongoing 10-K reports.

So thank's for sharing the info.

Take care,

Midwestguy

[jimbeetle]

>>Woo hoo!

Kind of my first reaction. An IPO for an upscale online retailer immediately before the start of what might prove to be a difficult holiday shopping season.

Will be very interesting to see where they are come January.

[Chndru]

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[lazerzubb]

Interesting in RedEnvelope's case is that Michael Moritz is chairman of the company, for those who doesn't know he used to sit on the board at Yahoo, and is currently also on Google's board.

[PatrickDeese]

I wouldn't invest in them - they aren't optimized for G - all the major ecom sites are completely SE friendly (ie Amazon).

I would not invest in an ecom site that needs to rely on traditional media (ie print/radio/TV) and Adwords/Overture to build brand and draw traffic - in other words - to make money.