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Finance professors may do double takes when they read a new report about taking companies public -- provided at no charge by an unknown company called Cherry Hill Research.
They found that securities analysts, relying on rigid yardsticks like price-to-earnings ratios, chronically underestimated the prospects of a young, unknown company.
"It is most surprising that an unknown company with a very different looking product can win the No 1 spot in America in such a short time.
Just as bizarrely, Yuganskneftegaz was sold in a rigged auction for $9.4 billion to an unknown company, whose registered address happened to be shared with a provincial grocery.
In 1984 an unknown company called Apple used it to launch the Macintosh as a machine that would free people from a grim Orwellian future.
Second, there are cultural barriers: it can be hard to recruit employees to work for an unknown company in exchange for equity, for instance.
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Without money for advertising, these unknown companies have to promote themselves to potential users, investors, employees and partners.
This approach changed advertising strategy and helped turn unknown companies into household names, including Miracle-Gro and GNC.
Why were two relatively unknown companies trying to buy a company like Fashionmall at a time when the financial markets have soured on Internet stocks?
Prospecting is often done by small, unknown companies, whose apparent aim is to interest bigger firms, and then sell them stakes in full-blown production.
In the hands of much larger institutions, the investment banks that have specialised in start-ups may lose some of their enthusiasm for dealing with unknown companies seeking relatively small amounts of capital.What will replace them?
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undisclosed company
unknown sector
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unspecified company
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unfamiliar company
unnamed company
unknown factory
unknown service
unknown director
unknown businessman
unknown job
unknown family
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