GMTN - questionable company, good return on IPO day here's why->|
The reason for the huge returns on the IPO date of the internet stocks aren't because they're all good companies (believe it or not!) The Investing public is not betting on the present, their betting on the way-way-way-future. Example: Media Metrix, great IPO-day preformance, jumped around 150% (maybe more, I will check) and in their prospectus there's a line that read something to the effect of "We may NEVER make any money." there are countless others to back that up.. (PCLN, the one that comes to mind, they also state in their prospectus "We may never be profitable") Same thing with VUSA (value america.com)
In closing, I will try my darndest to be in on GMTN, flip on day 1, and that's the end of it. This one IS NOT a long-term hold.