Investors Eye Onslaught of Tech IPOs

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Oct. 29 (Bloomberg) -- Intrepid Capital Funds President and Portfolio Manager Mark Travis, previews today's markets and discusses his investment ideas with Betty Liu on Bloomberg Television's "In The Loop." (Source: Bloomberg)

Intrepid capital funds, he helps manage one point $4 billion.

Investors are bidding up tech ipo's like it's 1999. alix steel and julie hyman joining us as well.

Mark, some people have terrible memories of 1999. that is not a good thing that you're seeing this bidding.

No, i reflect fondly on that period.

We have always had a large private capital -- client base.

We watched them flee.

I don't think many of them could afford what came after that.

There was a bigger disparity in valuation in smaller cap equity in the late 1990's. we had companies trading at what we thought were discounts to private market value.

Today, not so much.

Totally the opposite.

Pretty much, everything has been bid up.

The see of liquidity, when money is free, everything looks like an investment.

The most painful thing to own is maybe the thing to own.

The most painful thing to owner now is cash.

We have a lot of it.

Do using the twitter ipo valuation is too high?

-- do you think the twitter ipo valuation is too high?

It worries me when my 15 year old wants to put money in twitter.

Be proud of him.

These are frequent users.

He is thinking about.

There are a lot of expectations of growth and profit that have not come forth yet.

They are not making money yet.

I want to get to some stocks that you think are making money.

New field exploration, alix steel has been looking at that company.

This is an oil and natural gas company.

It tracks natural gas prices for the well.

-- pretty well.

If you look in the last few weeks, we have seen natural gas futures come off, down about 13% on the year.

There are some stumbling blocks as well.

First, natural gas output is scheduled to increase next year according to the eia.

On the demand front, worries that there will be less natural gas used for power generation.

Finally, newfield is selling stakes in malaysian fields where he got 39% of revenue last year.

Does that concern you?

We think the sale is a good thing, to keep their leverage at a manageable level.

We don't want to see their leverage increase.

They are trying to sell chinese and malaysian assets.

Hopefully they will get 600 million for their chinese assets.

Most of their production is based in utah, they are the largest energy producer in utah.

The drop in natural gas price give us an opportunity in the spring of 2011 to acquire shares.

As everybody knows, natural gas is being produced everywhere.

Do you expect prices to fall next year?

You have taken a lot of people out of production, at $3.50 per ncf, three dollars is probably the rock-bottom.

They are more oily than you give them credit for.

Another when you say investors should look at, julie has been digging into that.

A company that provides billing services for telecom companies.

Shares are up, they have underperformed the s&p 500. in particular, the company back in mid summer came out with a forecast short of estimates.

The net income expectations are all over the place.

The company, when talking about that fourth-quarter forecast, pointed out areas of concern.

And certainty because of consolidation of north american telecom carriers, challenging conditions in europe, and challenging conditions in the emerging markets.

Why go into this underperformer?

People have to make a trade- off in equity markets.

They have to raise ahead with the market has gone parabolic or they decide they will do better in a difficult environment.

Our charter is to participate in an up market that preserve capital in the down market.

We can show people that we have done that we have, m.v.p.. -- that we have done that in the period of 2003. looking at a company like that, we are familiar with a smaller company.

Very defensive business and balance sheet.

Thank you for joining us, president and portfolio manager for intrepid capital funds.

This text has been automatically generated. It may not be 100% accurate.


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