JaredLindenbergFortuNetXC

JaredLindenbergFortuNetXC - first day trade at $9.05 .- . ....

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FortuNet IPO Extra Credit Assignment Jared Lindenberg – Kiss – Sect. 0701 February 18, 2011 FortuNet Inc. is a gaming equipment operator, manufacturer, and distributor from Las Vegas, Nevada. They are currently the main distributor for the BingoStar network which connects all the bingo halls an casinos throughout the world by utilizing point-of-sale terminals and bingo caller terminals to integrate the wireless electronic bingo system. In Las Vegas, FortuNet Inc. is an electronic gaming service provider for many of the popular casinos, while distributing its systems outside of Las Vegas through its subsidiary, Millennium Games, Inc. The offer price when issued in 1/31/06 was $9.00, and it ended its
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Unformatted text preview: first day trade at $9.05 .- . . = . 9 05 9 009 00 0 00556 , =0.56% The average first day return for 2006 was 11%, which is significantly higher than the 0.56% for FortuNet. According to AmericanProgress.org, the economic conditions for 2006 could be categorized by a slowdown. The economic growth was a 5.6% in the first quarter of 2006 (when the FortuNet IPO occurred), but slowed to 2.6% by the second quarter. However, the real issue is that consumers debts became high, which caused a slowdown at the Casinos (which caused less business for FortuNet). This is most likely the reason why the first day return for the FortuNet IPO was so much lower than that years industry average of 11%....
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