Hotel Reservations Network (HRN) IPO's on Feb. 25 - More Hot Reservation Portal IPO At The Horizon
If the Holy Family had access to the Internet some two thousand years ago, they may not have had to stay in a stable.
Instead, they might have gone to Hotel Reservations Network (proposed Nasdaq symbol: ROOM). The company was formed in March 1999, after USA Networks
If a traveler wants to become an investor in Hotel Reservations, they'll get that chance on Friday, February 25, when the IPO starts trading.
Donaldson, Lufkin & Jenrette
The offering is expected to raise about $65 million. The company plans to use the proceeds for working capital, expansion, advertising and other marketing, capital expenditures, and acquisitions.
A REAL COMPANY
The company has negotiated marketing agreements with many of the leading travel-related Web sites, such as Preview Travel
Francis Gaskins of Gaskins IPO Desktop gives Hotel Reservations Network a B rating. Mr. Gaskins, a veteran Wall Street analyst, evaluates IPOs according to their business models and assigns ratings of A, B, or C for long-term investment purposes. The A ratings are rare, while the C rating is much more common. The B rating is good, and Mr. Gaskins likes this deal. "Hotel Reservations has a good growth rate, is a money maker, and is a real company," he says. And it is an Internet operator.
Hotel Reservations's financials back up Mr. Gaskins's opinion. The company reported pro forma net revenues of $161.8 million for the year ended December 31, 1999, up from $66.5 million in 1998 for its predecessor company. Its revenue has showed a steady increase as well -- in 1996 it did $23.3 million. Hotel Reservations did report a net loss of $8.5 million in 1999 versus a net profit of $1.7 million in 1998. But there was a deduction of $34.1 million for amortization of goodwill against the 1999 results.
Mr. Gaskins isn't the only IPO expert who likes this offering. According to
Source:
By John E. Fitzgibbon Jr.