The highly-anticipated QuinStreet IPO received a lukewarm reception on its trading debut on Thursday.
The company, which competes with Google and Yahoo to sell advertising, raised $140 million selling 10 million shares for $15 each.
This was below its expected range of $17 to $19 a piece.
Shares of QuinStreet which is trading under the symbol QNST traded down $.06 to close at $14.94 after its first session.
Quinstreet bought the domain name insure.com for $16 Million back in November 2009.
i would put some money into this company, these are good at what they do. in fact i will put some money into this co.
time to short this stock QNST … will be trading under $5/share within a year guaranteed!
It is a rocky stock market environment again(for the time being)to launch an IPO. At least it wasn’t withdrawn and they got it done…albeit below the initial price range specified in the red herring (preliminary prospectus). However, if one is investing for the long term, and not in for a quick flip or trade…it can often be a great opportunity to buy IPOs of companieis with quality/proven management teams at discounted prices…provided that the whole stockmarket market doesn’t tank dramatically for an extended period of time closely afterwards. – Where there is turmoil…there is opportunity !
The managing underwriters had been supporting the stock all day by buying shares with their over allotment option (“virtual short position”) provided by the “green shoe” allowance given to investment banks underwriting IPOs…thus allowing them to temporarily stabilize IPO shares (thus helping prevent a free-fall) after the commencement of trading of the new shares.