|I understand the worries. Don't get me wrong. At the same time, the cash flow KING is generating should allow them time to either build a few new revenue streams or buy them if their production falls short. They came to market at a great time for the company but not for the stock, IMO. It will be interesting to see if they can produce more in the near future or if they see their revenue drop significantly over the next couple of quarters. The cash they built from the IPO will help big time.|
Many IPOs can't perform to the standards of the market's expectations. Whether it's a few years or a few quarters is a big question for many newly minted issues. We saw this with ZNGA.
GRPN, to me, is another excellent example. Maybe I'm wrong but I think they're a few quarters away from starting to live up to those expectations. It may be a bit longer than that but I think they've done many of the "right things" to build their franchise. This has not directly translated into earnings power yet and they've been trading long enough for those who "bought the initial hype" to be frustrated.
We'll see.....my crystal ball has been wrong many, many times!!