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Stock Watch: VA Linux Has Record-Breaking Day

By Andy Wang
Dec 10, 1999 12:00 AM PT

The initial public offering of VA Linux Systems (Nasdaq: LNUX), which develops servers and workstations that are designed for Linux, racked up the best first-day performance in history Thursday, gaining a stunning 697.5 percent.

Stock Watch: VA Linux Has Record-Breaking Day

The initial public offering was priced at $30, the top of its revised range of $28 to $30, after an original range of just $11 to $13. The stock gained 209-1/4 to close at 239-1/4 on Thursday after opening at 299 and trading as high as 320. The performance supplants TheGlobe.com's 606 percent climb (November 13, 1998) as the highest first-day percentage gain in history.

Clearly, the fervor surrounding the Linux operating system is growing. VA Linux's performance also reinforces the fact that the current IPO market is like nothing we have ever seen. According to Hoover's Online, nine of the top 10 first-day performances have occurred in the last year -- and four of those have happened in a little more than a month.

Unlike TheGlobe.com, VA Linux's stock will probably not fall back near its offering price. The company has an impressive list of customers including IBM, Cisco Systems, eToys and Inktomi -- and Intel is a major shareholder.

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How do you feel about accidents that occur when self-driving vehicles are being tested?
Self-driving vehicles should be banned -- one death is one too many.
Autonomous vehicles could save thousands of lives -- the tests should continue.
Companies with bad safety records should have to stop testing.
Accidents happen -- we should investigate and learn from them.
The tests are pointless -- most people will never trust software and sensors.
Most injuries and fatalities in self-driving auto tests are due to human error.