Cobalt IPO Opens...High

GrenDel Fuego was the first to write with the news of Cobalt's rather succesful IPO. It's gone from 22$ opening shares to a now current of 146$ per share. You can check where it's currently at as well.

Comments

Extraordinary popular delutions and the madness of

[john wave]

Maybe you should read Mackay's classic Extraordinary popular delusions and the madness of crowds

Volume 2

Volume 3

Watch Yourself

[J.P.]

Do yourself a favor and don't try chasing this stock at these levels. You could easily end up as road kill. Sentiment in the market is decidedly bullish as compared to the sentiment at the time of the Red Hat IPO. Buy it on pullbacks if you think you must own it. Or buy Red Hat as an alternative if you must play the Linux theme. (Disclosure, I own Red Hat).

Not surprising...

[Wah]

... they have a good product and I would guess pretty solid margins. They are doing all the config and setup for dedicated web boxes. I have one doing, DHCP, NAT, DNS, firewall, webserving, e-mail, all with what amounts to a point and click interface (and a bit of hand tweaking). My box has been up for 5 months solid after one reboot (my bad) out of it's box.

I think the Home Web Server(tm) will become more common as families set up their own e-mail boxes, and a family web-page on a dedicated pipe. Since the same box can also serve to share a 'Net connection and act as a firewall it's quite a deal. Plus, and this is a big plus, they look dang cool, especially in the dark. (I'm talking about the Qube not the Raq)

Good product + looks cool + runs Linux = big IPO

A cartoon I remember seeing

[Uruk]

I believe this was in the New Yorker. One of those one-paned cartoons.

A bum sits on the street holding a sign that says "Spare a dime?". He is totally ignored. Look down the street a half a block, and a man is sitting on the street with people crowded around throwing money at him in large amounts. He is holding a sign that says "SpareADime.com"

Just goes to show that in some economic climates you get a feeling that you just can't lose. I think that the stock price for a lot of those high tech companies is vastly overvalued, and therefore bad for the economy, but investors do what they want to, because the stock market and the economy are not driven by rational decisions, but by greed.

I think RedHat is a fabulous company, and of course I wish I had bought their stock when it IPO'd, but I think that even though it's fallen significantly from its highs right after the IPO it's still overvalued. Same with these Cobalt clowns - I don't mean to come down on the company really, I'm just thinking that you can expect their stock price to take a nosedive, and then straighten itself out and begin rising steadily probably in the $80 range or so if Redhat has taught us anything.

One thing is for sure: In IPO land, unless you get in right at the offering price, it sounds like speculative day trading to me. I guarantee many people are going to lose their ass because of cobalt stock within the next 2-3 weeks because of profit takers realizing that the market has gone irrationally high on the price and taking their profits.

David