The IPO market is ready to start rolling at full speed again this week, with 19 companies scheduled to go public — and there are plenty of new issues for investors that are interested in e-commerce.
Among the expected high-fliers are Neoforma.com, which provides business-to-business (B2B) services for the medical supplies market; 724 Solutions, which enables financial institutions to offer online banking services; L90, an online direct marketing and advertising company; and Extensity, which provides Internet-based workforce organization software.
One e-commerce IPO that investors might want to be leery of is online superstore Buy.com. Stocks of online retailers are becoming increasingly out of favor as investors pour money into B2B and infrastructure plays. Plus, Buy.com has a questionable business model. The company sells many items at or below cost and tries to make it up in volume by selling advertising. This manner of doing business is pretty dicey, even on the Internet.