Analyst Cautious On Willis IPO
While London-based Willis Group Holdings' initial public offering closed higher than its June 12 offering price, one investment analyst cautioned that the firms earnings per share estimate could be too high.
Nikolai D. Fisken of Stephens Inc. in Little Rock, Ark. said investors should be wary of the stock over the long term. "Im not saying it's not going to be a hit, but Im suspect of the number," he said.
Mr. Fiskens concern centered around Willis earnings per share, which run from a loss of $1.11 in 1999 to a predicted gain of 50 cents per share by 2002. "Its an incredible increase," he said. "Given how fast the increase is, it deserves a lot of focus. But it is a great IPO and it has done well so far."
Mr. Fisken said that Willis greatest asset is Chief Executive Officer Joseph J. Plumeri, who took over in October 2000 after a long association with CitiGroup. He said if there is anyone who can motivate the firm to reach those earnings numbers, it would be Mr. Plumeri.
On June 13, shares closed at $16.55, down from Tuesdays closing of $16.60. In a press release, the company said its IPO was priced at $13.50 per share under the trading symbol WSH. Tuesdays closing was 23 percent higher than the firms initial public offering.
A company spokesman said the firm could not comment at this time on the IPO because of Securities and Exchange Commission regulations.
Reproduced from National Underwriter Edition, June 22, 2001. Copyright 2001 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.
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