“Investors, including a few lucky E-Trade account holders, who
got shares at the offering price of $30 a share whooped with joy.
Meanwhile, other observers gasped in horror. Stock message
boards on discussion sites like Raging Bull and Silicon Investor
were filled with posts expressing astonishment that anyone would
pay this price for a hardware company with $17 million in sales
last year.”
“And, indeed, there is good reason to think that buying into a
super-hot IPO, however promising the company, is not a great idea.
Studies have shown that explosive IPOs often under perform the
market.”