Is Hulu the Hottest deal of 2010?

IPO Could Change Sentiment

In the late fall, online video company Hulu will undergo an initial public offering. While the underwriters are currently unknown, the company is looking to raise roughly $2billion. This offering could potentially be the hottest of the year. In 2009 the company did more than $100million in revenue and most industry people are expecting Hulu to easily generate more in 2010.

Hulu offers a subscription service for $9.99 a month. The service allows subscribers to watch old and new TV shows via internet devices. No matter what, this IPO should create a buzz, not only with the trading community, but with novice investors as well. This type of aftermarket interest propelled Tesla Motors (NASDAQ:TSLA) to lofty highs when it went public.

On the less positive side, industry experts like Rupert Murdoch have often been negative on free internet content. Still this deal should remain hot and potentially be the catalyst for some mediocre IPO’s to suddenly become hot. Penny stock newsletters will probably also join in on the story.

This should bode well for the penny stock market as well. Many OTCBB companies have tried to associate themselves with either Apple Computer (NASDAQ:AAPL) or Google (NASDAQ:GOOG). Surely some potentially hot penny stock will try to capitalize on this new market.

The key is finding the right microcap stock that will trade up in anticipation of the Hulu IPO. This is the hard part. We will be researching this subject and if it makes sense, a company will be highlighted. So stay tuned. Also, due your own research as well. Keep in mind there are many penny stocks that slip under the radar and some of those can provide massive gains if you buy them right. So do your homework and be prepared.

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