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IPOs of quality, not quantity
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February 13, 2000: 10:02 a.m. ET
Initial public offerings fall in number, but investor interest remains high
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NEW YORK (CNNfn) - While the pace of initial public offerings is expected to slow this week, investors are not likely to be disappointed because a number of potential high flyers are set to raise a total of $1 billion.
"After the last few days I wouldn't mind a slightly slower week," joked Corey Ostman, analyst at Alert! IPO, referring to last week's busy schedule.
Still, Jeffrey Hirschkorn, senior market analyst at IPO.com, has his eye on two potential winners.
The first is Inforte (INFT). The e-business consultant plans to sell 2 million shares in the $23 to $25 price range.
Not only is Inforte in a growing market, Hirschkorn said, but they have actual earnings, a rarity among technology IPOs.
"They make money," Hirschkorn said. "The market's going to respond heavily to this."
Inforte earned $777,000 in 1998.
Hirschkorn also likes Gigamedia (GIGM). The Taiwanese firm provides broadband Internet access services through cable television lines.
Overseas Internet companies have seen strong investor demand. Hirschkorn sees Gigamedia continuing the trend.
"As you know, the foreign markets is just exploding," he said. "This is a rapidly growing market and there is no competition."
Analysts also like Choice One Communications (CWON). The provider of broadband data and voice telecommunications services plans to sell 7.1 million shares in the $15 to $17 range.
"They are coming out at the right time in the market," Alert! IPO's Ostman said.
Ostman will be watching two other IPOs he sees as benchmarks within their industry.
Varsitybooks.com (VSTY), an online retailer of college textbooks, plans to sell 4 million shares at an undisclosed price range.
The offering will be another test of investor appetite for online retailers. Buy.com (BUYX: Research, Estimates) last week performed well, but Pets.com (IPET: Research, Estimates) drew little investor interest.
"That's going to be the one to watch," Ostman said. "If you look at college students, everyone's online."
Finally, Ostman will be eyeing LendingTree (TREE). The Web site where consumers can shop for loans offered by banks is selling 3.6 million shares in the $10 to $12 range.
Ostman said the company will be one of the first online loan centers to go public.
"There really hasn't been anything to compare it to," Ostman said.
Biotechnology and gene mapping firms have gotten a lot of attention this year. Analysts this week will be watching Diversa (DVSA). The maker of biologically active compounds is selling 7 million shares in the $20 to $22 range. 
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