updated 12:05 pm EDT, Wed October 20, 2004
iPod-chip maker PortalPlayer as it recently filed for an IPO in August based on the soaring sales of Apple's iPod. BusinessWeek says that it has no profits, lacks a contract with Apple, and may face competition: " Should investors dive into this one? Not so fast, analysts say. No one doubts that PortalPlayer's technology is innovative, but the business of designing semiconductor chips is dicey. What's more, the concern may have trouble protecting its intellectual property, and competition is building. And then there is the fact that, despite iPod's runaway success, PortalPlayer still hasn't managed to turn a profit. Buying in at any price could carry a high risk, since the outfit relies on Apple for the vast majority of its sales."