Cambridge native Zipcar is going public offering 9.68 million shares under the ticker of ZIP under the NASDAQ 100 Index. Underwriters, including Goldman Sachs and JP Morgan, have priced it at $18. It was originally priced $12-14.
Zipcar is in the car-sharing business. Competitors include Hertz, Avis, U-Haul. 560,000 customers in 14 cities and 230 university campuses in the US and UK. Fundamentally, Revenues have been increasing. Assets and liabilites, unfortunately, have increased twofold.
The risks involved with ZIP are the vulnerability to higher gas prices and speculation of not having the ability to expand internationally, or even as a company with as little as 450 employees. It is also estimated that the company will continue net losses throughout 2011 temporarily.
This IPO opens in the face of a weakened dollar, rising oil, and a spike in jobless claims. S&P 500 Index just broke the losing streak yesterday, and it will have to gain much ground being down as much as 1% today. Volume is lower due to uncertainty in government play. Intel, Microsoft, and Cisco are weighing down the NASDAQ 100 Index, and Google is set to report is Q1 2011 earnings report today. CPI news coming out tomorrow as well.
It would be optimistic to connect this company with Netflix and Open Table. Operating expenses are larger, and expanding could be costly. However, the brand is one of the better known IPO's getting released and should not be denied.
ZIP is one out of two IPO's that I will be trading today- the other Arcos Dorados (ARCO). I expect ZIP to open at $23, and fluctuate to $24 during the close. Both Google and this IPO will help bring NASDAQ 100 Index upward momentum due to a spike in volume midday.
Stay tuned. I will check back in an hourly update. Also in other headlines, I got my first subscriber: Jeremy Liu, whoever he is. Thank you.
Update: Open at $29!
The risks involved with ZIP are the vulnerability to higher gas prices and speculation of not having the ability to expand internationally, or even as a company with as little as 450 employees. It is also estimated that the company will continue net losses throughout 2011 temporarily.
This IPO opens in the face of a weakened dollar, rising oil, and a spike in jobless claims. S&P 500 Index just broke the losing streak yesterday, and it will have to gain much ground being down as much as 1% today. Volume is lower due to uncertainty in government play. Intel, Microsoft, and Cisco are weighing down the NASDAQ 100 Index, and Google is set to report is Q1 2011 earnings report today. CPI news coming out tomorrow as well.
It would be optimistic to connect this company with Netflix and Open Table. Operating expenses are larger, and expanding could be costly. However, the brand is one of the better known IPO's getting released and should not be denied.
ZIP is one out of two IPO's that I will be trading today- the other Arcos Dorados (ARCO). I expect ZIP to open at $23, and fluctuate to $24 during the close. Both Google and this IPO will help bring NASDAQ 100 Index upward momentum due to a spike in volume midday.
Stay tuned. I will check back in an hourly update. Also in other headlines, I got my first subscriber: Jeremy Liu, whoever he is. Thank you.
Update: Open at $29!
no worries mate ;)
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