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Summarized by Joyce Feustel
IPO Of Orem-based Caldera, Employer Of LDS Members, Is A 'Smash Hit'
Deseret News 14Mar00 B4
By Jenifer K. Nii: Deseret News staff writer
OREM, UTAH -- A Smash Hit is coming to Orem Utah! A software company
based in Orem, Utah and a major employer of LDS Church members is
expected to take the software market by storm. The company, Caldera
Systems Inc, sells Linux-based software for businesses. This
software is based on "open source technology" and has begun taking
business away from competitors Microsoft and UNIX. Caldera launched
its IPO Tuesday, selling approximately 5 million shares on NASDAQ for
between $8 and $10 per share, up from last week's estimated price of
$7 to $9 per share. In its first day of trading, shares more than
doubled!
Using buzzwords like World Wide Web and e-commerce Dan Kusnetzky,
Industry analyst and program director at International Data Corp
said, "people who missed the Red Hat bandwagon and VA Linux offering
might become very excited with Caldera. Those are the people who are
bidding up the offering. While there may be flashes when the stock
goes up very high, it's the next round of buyers Caldera has to worry
about. Those are the buyers who will want to know Caldera - who they
are, what they do, and why they (the investors) should become
involved with the company"
RedHerring.com has ranked the
company's IPO among its "Red Hot" ratings. David Menlow, president of
IPOfinancial.com, said "Caldera is at the upper end of the stocks we
expect to do well at the beginning.The Red Hat offering and the VA
Linux offering have taken quite a bit of thunder out of the
marketplace with regard to Linux stocks, but I still believe there is
room in the marketplace for a few more offerings, and Caldera Systems
is going to be one of the beneficiaries of that because it will beat
other competitors into the market."
The question arises...Is it too early and the company still too new
to survive the open market?
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