Optium Corp.'s IPO Launch a Great Success

Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:

Optium IPO Rises 24% in Market Debut [Reuters]

Summary: In the midst of a strong push by the large U.S. telecom and cable companies to upgrade their networks in order to accommodate the growing bandwith needs being placed on their networks, Optium Corp. debuted on the NASDAQ Friday with great success. The $91 million initial public offering started trading at a 21 percent premium at $21.25 and rose as high as $22.45 before closing at $19.60, still up 12 percent from the IPO price, giving the company a total market cap of $430 million. Optium is valued at 80 times its PE ratio based on Friday's closing price; as a basis of comparison, industry competitor Agilent Technologies trades at 12 times earnings. Optium's main product line is transceivers, which send and receive digital data in communications systems; customers include Cisco, Scientific Atlanta and Ericsson.
Related links: Optical Stocks: A Mixed Bag Toward 4Q06 • Networking IPO: Optium files an S-1: (OPTM) • The Future of Network Processing Units Doesn't Look Too Rosy • Optium Corporation Initial Public Offering Priced At $17.50 Per Share [IPO Blog] • Optium Rises 12% in Debut As Tech IPOs Stay Hot [WSJ]
Potentially impacted stocks and ETFs: Optimum Corp. (OPTM), Agilent Technologies (A), Cisco Systems Inc. (CSCO), Ericsson (ERIC) • PowerShares Dynamic Networking (PXQ), iShares Goldman Sachs Networking (IGN)

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