Outstrip Demand A slew of Internet companies filing to go public has tapped a large part of the public's demand for these issues and left the aftermarket for the entire group much more diluted. It happens from about every quarter or six months with too many deals chasing too few dollars. I purposely go back a month on the table to see how the market's rate fear affected the after-market. Also watering down the IPO group is the sheer glut of Internet IPOs in registration.
Every company wants to get out an already narrowed window.
Another few factors diluting the IPO market is the handful of secondaries, increased price range and shares offered for IPOs, and public's lack of knowledge about what these companies actually do. Yet another variable is the extreme volatility in the sector in general, the risk side of the reward scale, thin floats and scores of big and small money looking to buy and sell the same group of stocks. However, some of the market pioneers have the best chance to rise above the noise. What I like about this company is its leadership in Web-based toy branding and sales. If we use Amazon as an example of embrace and extend the I would posit that eToys very well could be a competitor to Disney's kids Web efforts.