It has been a tough first several days as a public company for online sweepstakes promoter Webstakes (Nasdaq: IWIN). Webstakes’ stock has struggled mightily since the company went public on Friday at $14. Shares of Webstakes closed down 1-3/8 to 9 on Wednesday, putting the stock nearly 36 percent lower than its offering price on $14. The lead underwriter for Webstakes’ IPO, Bear Stearns, has to be embarrassed right now.
Webstakes isn’t hopelesss, however. The company has more than 1.5 million members who have signed up for its services, and Webstakes has created promotions for companies including NBC, Disney, Citibank and CBS SportsLine.
Webstakes might be a stock to examine at this level, but for now, its seemingly solid foundation might not be enough to carry the stock back to $14. The company is obviously still in its quiet period, so investors could have to wait a few more weeks for news that could help boost the stock.