IT-Director: Yet Another Wild Linux IPO? [LinuxOne]Sep 24, 1999, 19:07 (4 Talkback[s])
(Other stories by Snark)
"The stock market has never been as receptive of 'thin' business propositions as now, except perhaps just before the crash of 1929 when radio shares were going wild at unbelievable p/e ratios."
"Like many other observers, we have watched the march of the "dot com" stocks with great bewilderment. Admittedly some of the business ideas in the prospectuses were well thought through and showed some promise, but that was not true of all of them - only a few. Even when it was true the subsequent valuations made no sense whatsoever..."
"So now we have the wild Linux business propositions. Red Hat set the trend with a market valuation that implied it that might eventually rival Microsoft. We expect Red Hat to be successful and make money, but it will never be another Microsoft. The Linux GPL ensures that. But now we have a queue of Linux IPOs forming. The newest one is LinuxOne..."
"In our view this is probably 'an IPO too far'. Not only do we fail to see a business case, we fail to see how any company could make any business case that justifies an IPO which involves only half a year's operation and the registration of a brand. The bottom will inevitably fall out of this market at some point..."