“The company’s investors are betting Red Hat’s version of
the Linux operating system will someday be a viable competitor to
Microsoft’s Windows NT.”
“David Menlow, president of IPO Financial Network in Millburn,
N.J., said Red Hat’s stock is overpriced at $47 per share, and he
said he expects it to decline substantially over the next two
weeks.”
“Red Hat investors shouldn’t expect to see profits any time
soon. The company said in a filing with the Securities and Exchange
Commission that it expects to ‘incur significant losses for the
foreseeable future and cannot be certain when or if [it] will
achieve profitability.’ “