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Newegg finally goes public, with financial analysts expecting big things

Online retailer Newegg today announced plans to go public, filing for a $175 million IPO, according to an SEC filing.

Newegg is best known as a technology e-tailer, but has expanded of late to include other consumer electronics.  Since launching in 2001, the company has been profitable every year, with $2.1 billion in sales in 2008.  In 2007, the company saw $1.9 billion in sales, with the number expected to increase as Newegg expands its business.

The company has seen dramatic success after making changes to support small- and medium-sized businesses in the United States.  Newegg also has its sights outside the United States, with China expected to be an important step in the company's continued expansion.  Furthermore, Canada also is expected to be a big market for Newegg, with many Canadians long requesting to be able to make purchases from the site.

The company does have to deal with several issues in the immediate future, including a patent infringement lawsuit filed by Soverain Software, according to the IPO registration filing.  If Soverain is successful in getting an injunction against Newegg, the company may be forced to "stop or alter certain of our business activities."

In the future, Circuit City -- although its physical stores went bankrupt, a liquidator purchased the company's online business and keeps it running -- will lead the charge of online businesses that aim to derail Newegg.

The IPO will be handled by Citi, JP Morgan, and the Bank of America, with Newegg's largest shareholder, Insight Venture Partners, also completing another IPO earlier in the year.

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Cycle of Life
By Sulphademus on 9/28/2009 4:08:09 PM , Rating: 5
Geeks buy shares of new public company.
Company issues dividends.
Geeks spend dividend earnings on Newegg shellshockers.
Newegg issues more dividends.
Geek shareholders buy more shellshockers.

I know thats how it would work with me.

RE: Cycle of Life
By Spivonious on 9/28/2009 4:16:25 PM , Rating: 3
You nailed it.

I guess I should set up my ETrade account now to get ready for this.

RE: Cycle of Life
By dubldwn on 9/28/2009 6:22:47 PM , Rating: 2
Even if it's a token number of shares, I will buy Newegg. I just want to see it on my list of stocks. Huge fan.

RE: Cycle of Life
By powerboxing on 9/28/09, Rating: -1
RE: Cycle of Life
By dubldwn on 9/28/2009 7:01:03 PM , Rating: 2
I use OptionsXpress and I'm happy with them. They have a cool mobile app. What's wrong with e*trade?

RE: Cycle of Life
By callmeroy on 9/29/2009 2:45:04 PM , Rating: 2
I sure hope NO ONE in this thread falls for using that guys referall code....

RE: Cycle of Life
By therealnickdanger on 9/29/2009 12:59:03 AM , Rating: 2
I've already picked which of my stocks I'm selling to buy into it!


RE: Cycle of Life
By skyyspam on 9/28/2009 9:13:03 PM , Rating: 2
Not issuing dividends. Probably won't.

I'll buy a few thousand shares when it hits the street, I've always liked newegg's business model and I expect they have great plans for increasing market share. Definitely will long this.

“Then they pop up and say ‘Hello, surprise! Give us your money or we will shut you down!' Screw them. Seriously, screw them. You can quote me on that.” -- Newegg Chief Legal Officer Lee Cheng referencing patent trolls
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