Monday, January 09, 2006

WSJ.com - Tech Stocks Seem Set for Comeback

"Technology companies, once the star performers in the IPO market, are expected to receive a wider audience in 2006 after years of struggling to win back investors.
The queue of technology companies that have registered with the Securities and Exchange Commission for IPOs in 2006 is hovering at about a dozen deals, but investment bankers believe the backlog doesn't reflect the growing number of discussions going on between companies and Wall Street. They say it's likely that technology-stock deals will pick up beginning around the second half, as companies get a few more successful quarters under their belts, and exceed the number of deals in 2005, which totaled 30, according to IPO research firm Renaissance Capital in Greenwich, Conn.
'In 2005, because the markets were difficult, I think a lot of people looked at the market and said, 'Maybe we should wait until 2006, when we might be able to get a better valuation based on our future earnings,' ' says Andy Fisher, head of technology equity capital markets at Goldman Sachs Group Inc."

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