Category: IPOs

MasterCard (MA) IPO

MasterCard (NYSE: MA) shares jumped in it’s IPO on Thursday. MasterCard ended the day up +14% with shares instantly surging from the opening price of 40.20 to the closing price of 46.00.

MasterCard’s IPO has been the strongest IPO debut of 2005 and 2006.

The fundamentals are looking good – MA holds $1.3 billion in cash and another $1.3 billion in stockholder equity. MasterCard’s IPO has raised over $2 billion for the company.

I should have analyzed MasterCard’s fundamentals and reports a lot sooner. Long term I think MA can be a solid investment. Revenues are up from 2005 and I see this trend continuing for a number of years. Short term, I think MA still has potential for profitable trades with such a strong debut. The next few days will be key for short term traders.

Anyone get in on the MA IPO? What are you thoughts on MA short term or long term?

Vonage IPO Update

Vonage IPO Update

Vonage (NYSE: VG) shares have fallen 24% from 17.25 to 13.00 since the introduction of VG to the stock market on Wednesday.

Stock traders and investors are pricing in increased VOIP competition and high marketing costs, driving down the price. The future does not look so bright for Vonage. Some analysts believe Vonage IPO was overpriced, with many believing the price should have been around $10 per share.

The Vonage IPO has been the worst introduction this year, falling 13% on it’s first day of trading, and falling 24% total in two days of trading. Not very impressive.

I personally don’t like any VOIP stocks, mostly due to heavy competition. I am going to stay away from VG.

Vonage (Ticker: VG) IPO

Vonage (Ticker: VG Market: NYSE) will be traded on the NYSE stock market in a few short weeks. Vonage provides VOIP services, allowing you to make phone calls using your broadband cable modem or DSL internet connection, generally providing phone services cheaper than non-VOIP telephone providers. Vonage offers unlimited calls to anywhere in the U.S., Canada, Puerto Rico, and Europe for $24.99 per month.

Here is some information regarding the upcoming Vonage (Ticker: VG, Market: NYSE) initial public offering (IPO):

Vonage Holdings (VG)
Expected Date: Week of 5/22/2006
Price Range: $16.00 – $18.00
Shares Offered: 31.3 mm
Business: A leading provider of broadband telephone services. A Voice-Over-IP (VOIP) provider.
Industry: Telecomm-Cellular
Employees: 1393
Founded: 2000

I have heard Vonage is offering its customers the ability to buy shares of the stock before it is traded in the markets. I cannot verify this information as of yet, but once I can confirm or deny this I will let everyone know. A current Vonage customer has told me this information but I have not yet seen any written documentation. I will update this story as more information becomes available.