We aren’t in the business of just bashing companies or just praising companies, because we like to call it like we see it. Salary.com (SLRY-NASDAQ) is one of these IPO’s that just didnt make much sense for the huge gap yesterday. This opened up roughly 30% higher at $13.50 and traded up to about $14.00 yesterday after pricing 5.7 million shares at $10.50. The street had projected an $8.00 to $10.00 range.
The premium pricing seemed silly for the company, although stranger things have happened in dot.com IPO’s. This doesn’t mean that it is a bad company by any stretch. But not all good companies should be public and this one just looks and feels fully valued from the start. We could be very wrong and maybe they will prove us that way. You should go delve into the company financials and business model before making your own judgement.
SLRY shares are back down 1% to $12.35 mid-day.
Jon C. Ogg
February 16, 2007
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