NetSuite IPO update

It priced at $26, according to AP news.

I did NOT bid on NetSuite IPO eventually. Two things: it raised price range from initial 13-16 to 16-19; and I noticed NetSuite is not profitable so far. On the other hand, when its bigger rival, the on-demand software provider SalesForce (CRM) did IPO in 2004, it was about to turn profitable.

Don’t know the exact reason why the recent weak Mr. market valued it so high. I remember more than 3 years ago CRM was priced in mid teens range during IPO. I suspect the recent strong show of VMWare is one reason. Like the Baidu situation in 2005, it did IPO one year after the successful IPO of Google, people (who missed GOOG) bid up BIDU from the IPO price of $27, to openning price of $70. The night before IPO I was planning to buy it at $35, and get out at $42. My plan did not get executed because I was way too conservative 🙂

Got some MXB MSCI Inc. shares

I bought some MSCI (company, stock:MXB) today. A month ago I heard about it from my friend StrengthTrader’s blog. But at that time I was a bit obsessed with my LFT and CROX, and did not have stomach for another IPO. In last few weeks when I was doing research for my new 401K plan and IRA, I found MSCI index is frequently mentioned as the bench mark for many funds. It’s not the first time I heard about MSCI, but it re-inforced my belief that index fund will be more and more important for retirement investing. This is especially true in current weak market.

Also, from my limited research on the mutual funds for my 401k and IRA, most funds can not beat the index. So it does make sense for people to simply investing in the index fund (or ETF?).

Back to MSCI, it was a division inside Morgan Stanley, and recently got spin off, and IPOed on Nov. 18. Here is its prospectus. The stock is not cheap, at $29, its PE is about 34, twice the earning growth rate (17%). Also, keep in mind Morgan Stanely still has more than 80% stake on this baby.

By the way, for more information on mutual fund investing, you may want to check out my friend Sun’sFinancialDiary. I know he has a lot more experience on this topic than me.

(update Dec 20) Found this bearish article on MSCI at ZachStocks.