IPO should do well.. (Score 1)

The company is not worth the $3 billion market capitalization it is undoubtably going to get, but that's what hype will buy.

As the previous posters pointed out, a company earning $300k for the past 9 months of operation isn't exactly fit to go public, but they are doing it quickly so they'll have an option to cash out their shares after the 6-month waiting period. This is more money siphoned out of the public.

Some people have a misconception that selling services is more profitable than selling software - the opposite is true. The fact is that if doing the type of stuff that LinuxCare is selling becomes massively profitable, it will become an intensively competitive field.

And Red Hat competes in the same marketspace that LinuxCare is in.

But of course, they all do Linux, so that means they will be infinitely profitable in the future? If you buy shares, your answer to that question is "yes".