

Newegg finally goes public, with financial analysts expecting big things







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RE: mixed feelings
By kmmatney on 9/29/2009 2:18:53 PM , Rating: 2
Not only do they have to show profit, but they have to show that profit is increasing each year. They can make $25M profit in a year, and still look bad and have the stock go down. I don't see this as a good thing - I'm thinking some of the higher ups just want a big payday. That's what happened with my company after going public - a few higher ups became millionaires, while the company went bankrupt several years later.

RE: mixed feelings
By astralsolace on 9/30/2009 1:27:11 PM , Rating: 3
That's not true.. What happens is that when a company doesn't meet the industry analysts' expectations, people re-evaluate their investments.

If a company is reliably profitable, even if they're not increasing their profits by huge amounts each year (except for inflation), then their stock will still be worth owning.

Companies with stable/reliable profits, but without expansion usually send their profits back to the shareholders, i.e. dividends. They're called value stocks.

RE: mixed feelings
By JKflipflop98 on 10/6/2009 5:58:22 PM , Rating: 2
You are obviously correct. However the real issue here is that the newegg that we all know and love is going to tear itself to peices trying to keep that "constant expansion" image going.

Less staff, more hours for the ones that stay, higher prices, stricter return policy, and many other wonders of our capitalistic regime will be implanted upon them.

In short, they just took away all the reasons people love Newegg. The IPO is going to kill them.


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