Zipcar (NYSE: ZIP) Zips Out of the IPO Block

Movers & Shakers

Thursday's most active stocks were led by Zipcar (NYSE: ZIP), which zipped out of the blocks on its first day of trading. We take a closer look at this little winner.

Our founder earned clients a 23% average annual return over five years as an equity analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Relative Tickers: NYSE: ZIP, NYSE: HTZ, Nasdaq: SBAC, NYSE: WSC, NYSE: R, Nasdaq: RCII, NYSE: AER, Nasdaq: UHAL, NYSE: DTG, NYSE: URI, NYSE: CAR, NYSE: GMT, NYSE: TGH, NYSE: RRR, NYSE: TAL, NYSE: AYR, Nasdaq: MGRC, NYSE: CAP, Nasdaq: ELRC, NYSE: FLY, NYSE: BOX, Nasdaq: MRLN, Nasdaq: MIND, Nasdaq: WLFC, AMEX: ACY, Nasdaq: PEDH, NYSE: NEP, Nasdaq: ACOR, Nasdaq: CHINA, AMEX: BAA, Nasdaq: RPRX, Nasdaq: BCAR, Nasdaq: YRCW, Nasdaq: OTIV, NYSE: SVU, NYSE: CEU, NYSE: SCOK, Nasdaq: CIGX, Nasdaq: LLEN, Nasdaq: ONSM, Nasdaq: ESLR, Nasdaq: ADES, Nasdaq: QIHU, Nasdaq: OXBT, Nasdaq: COOL, Nasdaq: CBMX, Nasdaq: MOBI, Nasdaq: YOKU, Nasdaq: FFHL, Nasdaq: SGRP, Nasdaq: ENG, Nasdaq: STRM, Nasdaq: KONE, NYSE: KFS, Nasdaq: CALI, Nasdaq: PSOF, AMEX: CUO, Nasdaq: INUV, Nasdaq: PAAS, Nasdaq: CHMP, Nasdaq: RXII, Nasdaq: BBXT, Nasdaq: FFBH, NYSE: CBR, Nasdaq: PERF, Nasdaq: UFPI, NYSE: SRZ, NYSE: CDE, AMEX: STS, NYSE: LEE, Nasdaq: PFED, Nasdaq: RADA.

Zipcar (NYSE: ZIP) Zips Out of the IPO Block

Zipcar priced its initial public offering (IPO) at $18 a share, which was the maximum it registered to reach. Demand for the shares proved even hotter on the open market, as the somewhat revolutionary rental car company intrigued seekers of disruptive technology.

If you don't understand why, look at the long-term charts of Netflix (Nasdaq: NFLX), Google (Nasdaq: GOOG), Amazon.com (Nasdaq: AMZN) and dare I forget, Apple (Nasdaq: AAPL). You know Wal-Mart (NYSE: WMT) and Home Depot (NYSE: HD) once fit into this group as well. The best fitting one word description for such deliverers of disruption is winner!

Zipcar calls itself a car-sharing company, but it looks to us like a rental car company with a novel idea. Zipcar members can rent a shared vehicle for as short as an hour, making them extremely convenient for city dwellers in need of a puddle jumper™ for a short hop, or move, or a date even. Whether Zipcar's novel approach allows it to steal more market share or not will depend on the strategic reactions of embedded renters, Hertz (NYSE: HTZ), Dollar Thrifty (NYSE: DTG) and Avis Budget (NYSE: CAR). Non-profit car-sharing programs are not going to be able to compete, based on capital constraints.

Zipcar has taken the hassle out of renting a vehicle. There's none of that nonsense about insurance or gasoline (sort of) to worry about. You're not going to run up the cost of rental by running a couple hours late either. Zipcar makes it easier, and Americans like easy. Therefore, it is the real deal as far as disruptive technology goes. And knowing the established firms all too well, it's my best guess they'll be late to change and so some will go by the way of Borders and Blockbuster.

And I disagree with some who say there are no barriers to entry and that there is therefore no first-mover advantage. Zipcar is established in the hearts, minds and parking lots of the college crowd, young Americans, adopters of new technology. Zipcar is in the limited space of metropolitan residential and commercial parking lots, like many of its established rivals, but ahead of any new entrant. It's got important locations locked up near mass transit hubs.

Brand loyalty is not likely strong with rental firms, at least not in my case from my personal dealings. In fact, I would like to stick it to a few by taking advantage of Zipcar, and I bet there are a lot of Americans who feel the same way. Haven't you ever booked a car with one unmentioned poorly run rental firm, and shown up to find a group of people like yourself all waiting for overbooked vehicles (Upper East Siders know exactly which place in the 80s I'm talking about)? It's happened to me more than once! Or, haven't you ever been charged an extra day for ten minutes by any of the established firms?

Trading in ZIP was not allowed to begin until after 11:00 AM, when the shares first traded hands on the open market at a price of $29, 61.1% above the IPO price. Pumped paper profits allured Zipcar shareholders to flip away, and so the shares eased lower from the open, closing at $28, still marking a 56% first day gain. Not a bad birthday zippy!

Zipcar raised over $174 million Thursday, which the company will put promptly to use in expansion efforts. Pre-IPO, ZIP only operated in 14 major metropolitan areas, and more than 230 college campuses across the U.S, U.K. and Canada. Hot market demand helped the stock close at a point that values the company over a billion dollars, based on market capitalization. That's a better opening day value then Amazon.com (Nasdaq: AMZN), which accomplished a market cap of $438 million.

The company is not yet profitable, though it boasts profitability within its early markets, which we assume include Boston, New York and Washington D.C. Therefore, we cannot compare it to industry rivals based on P/E or PEG based comparisons. We estimate it trades somewhere near 5.8X its 2010 sales. Hertz trades at 0.9 times its trailing twelve month sales, and the Rental and Leasing Services Industry trades at approximately 1.41X. The problem with this comparison, though, is that ZIP is an aggressive growth company, while the establishment operate like cash cows (fat slow ones). The established have been growing through merger recently, and we suspect they will be shrinking through market share purging.

Jim Cramer notes his observation of a day-two follow through for hot IPOs. I'm just looking at Zipcar for the first time this evening, and S-1s are long, and time is short ahead of the start of the third period of the Flyers / Sabres series opener. If we were going to spend a few more days on this, we would want to look at the market opportunity, which the S-1 indicates is growing pretty darn rapidly. In fact, the market growth rate is 44% annually, if my back of the envelope estimate is right and the third party forecaster found in the S-1 is right. The problem is that this is the projection for the entire market, and the company itself tempers the third party growth estimate to 26% annually (that's still hot), projecting the $3.3 billion market to mature in 2020 instead of 2016.

It would take a few days of data review, interviews, analysis, forecasts and estimates to develop a DCF model worthy of trust here. So, let's just say that at this level of familiarity with ZIP, I would not be a buyer here without some more due diligence, though I would have wanted in on the IPO (thanks a lot for remembering me Wall Street). You can make up for it with Flyers tickets. Analysts covering ZIP or corporate representatives are welcome to send me a report to look over so I might update my view.

Article interests investors in Zipcar (NYSE: ZIP), Hertz (NYSE: HTZ), SBA Communications (Nasdaq: SBAC), Wesco (NYSE: WSC), Ryder (NYSE: R), Rent-A-Center (Nasdaq: RCII), Aercap (NYSE: AER), AMERCO (Nasdaq: UHAL), Dollar Thrifty (NYSE: DTG), United Rentals (NYSE: URI), Avis Budget (NYSE: CAR), GATX (NYSE: GMT), Textainer (NYSE: TGH), RSC Holdings (NYSE: RRR), TAL International (NYSE: TAL), Aircastle (NYSE: AYR), McGrath Rentcorp (Nasdaq: MGRC), CAI International (NYSE: CAP), Electro Rent (Nasdaq: ELRC), Fly Leasing (NYSE: FLY), SeaCube Container (NYSE: BOX), Marlin Business Services (Nasdaq: MRLN), Mitcham (Nasdaq: MIND), Willis Lease Finance (Nasdaq: WLFC) and AeroCentury (AMEX: ACY).

The day's other biggest gainers included Peoples Educational (Nasdaq: PEDH), China North East Petroleum (NYSE: NEP), Acorda Therapeutics (Nasdaq: ACOR), CDC Corp. (Nasdaq: CHINA), BANRO (AMEX: BAA), Repros Therapeutics (Nasdaq: RPRX), Bank of Carolinas (Nasdaq: BCAR), YRC Worldwide (Nasdaq: YRCW), On Track Innovations (Nasdaq: OTIV), SuperValu (NYSE: SVU), China Education Alliance (NYSE: CEU), SinoCoking Coal (NYSE: SCOK), Star Scientific (Nasdaq: CIGX), L&L Energy (Nasdaq: LLEN), Onstream Media (Nasdaq: ONSM), Evergreen Solar (Nasdaq: ESLR), ADA-ES (Nasdaq: ADES), Qihoo 360 (Nasdaq: QIHU), Oxygen Biotherapeutics (Nasdaq: OXBT), Majesco (Nasdaq: COOL), CombiMatrix (Nasdaq: CBMX), Sky-Mobi (Nasdaq: MOBI), Youku.com (Nasdaq: YOKU). The biggest losers included Fuwei Films (Nasdaq: FFHL), SPAR Group (Nasdaq: SGRP), ENGlobal (Nasdaq: ENG), Streamline Health (Nasdaq: STRM), Kingtone Wireless Info (Nasdaq: KONE), Kingsway Financial (NYSE: KFS), China Auto Logistics (Nasdaq: CALI), Pansoft (Nasdaq: PSOF), Continental Materials (AMEX: CUO), Inuvo (Nasdaq: INUV), Pan American Silver (Nasdaq: PAAS), Champion Industries (Nasdaq: CHMP), RXi Pharmaceuticals (Nasdaq: RXII), BankAtlantic (Nasdaq: BBXT), First Federal Bancshares of Ark (Nasdaq: FFBH), Ciber (NYSE: CBR), Perfumania (Nasdaq: PERF), Universal Forest (Nasdaq: UFPI), Sunrise Senior Living (NYSE: SRZ), Coeur d'Alene Mines (NYSE: CDE), Supreme Industries (AMEX: STS), Lee Enterprises (NYSE: LEE), Park Bancorp (Nasdaq: PFED) and Rada Electronics (Nasdaq: RADA).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Labor Market Analysis – Jobless Claims Spike Examined

Jobs Data Analysis

We received two reports this week that offer a mixed message on the state of the labor market. This morning, Weekly Initial Jobless Claims spiked back up above the 400K threshold. Meanwhile, yesterday, the Labor Department reported that job openings had improved through February. While the periods measured differ, this still left some investors with a view of a labor market in limbo. Our analytical outside-the-box style has us weighing two possible drivers of the spike in claims, one positive and one negative.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Relative Tickers: NYSE: RHI, NYSE: KFY, NYSE: MAN, NYSE: MWW, Nasdaq: KELYA, Nasdaq: JOBS, NYSE: JOB, Nasdaq: CECO, Nasdaq: PAYX, NYSE: ASF, Nasdaq: KFRC, NYSE: TBI, NYSE: DHX, NYSE: SFN, NYSE: CDI, Nasdaq: CCRN, Nasdaq: ASGN, NYSE: AHS, Nasdaq: BBSI, Nasdaq: HHGP, NYSE: SRT, Nasdaq: RCMT, Nasdaq: VSCP, OTC: ASRG.OB, OTC: MCTH.OB, OTC: IGEN.OB, OTC: STJO.OB, OTC: TNUS.OB, Nasdaq: TSTF, OTC: STTH.OB, OTC: PSRU.OB, OTC: CRRS.OB

Labor Market Analysis – Jobless Claims Spike Examined

The market celebrated on the open yesterday, perhaps partly on news that job openings had increased in February, rising by 12.8%, to 3.1 million. Today though, the Labor Department reported that weekly jobless claims spiked up to over 400K, an important psychological threshold we had only just gotten used to sitting under.

Weekly Jobless Claims

Today's DOL data covering the period ending April 9 showed weekly initial jobless claims spiked by 27,000, to 412K. This comes after several weeks of gradual improvement deeper below the psychological threshold of 400K. Our intuition has us weighing two distinct possibilities with regard to this change for the worse.

This could be an unfortunate result of global instability and increased uncertainty, which has contributed to a loss of consumer confidence with the help of rising gasoline prices (again the result of global uncertainty). Perhaps this factor is likewise impacting business decisions including workforce. Certainly, recent data from Wholesalers and Businesses shows sales rising short of inventory build, which we view as an indicator of spending slippage. Thus, economic deceleration could be the cause, but it would seem early to be driving layoffs.

This strange spike was so important that it nearly took the four-week moving average for jobless claims above the 400K threshold as well. The average rose 5,500, to a level of 395,750. There's one anomalous possibility we can see potentially behind the sudden increase. While we pointed to the near government shutdown as a possible driver for anomalous change in mortgage filings through the relative period, we wonder if perhaps a rush to handle paperwork contributed here as well. Maybe compassionate government workers pushed a little harder last week, to ensure those in need would be taken care of.

It would seem that we will know for sure if this week's increase was anomalous or not when we get next week's data. If it was merely an anomalous paperwork issue, then there should be a light claims figure to balance next week. Unfortunately, if it is the economy, then we should note another poor result next week.

Important Data FYI

Insured unemployment is measured for a lagging period, and was shown to have improved a tenth of a point, to 2.9% in the April 2 period. Insured unemployment fell by 58,000 in that span, to 3.68 million. However, the true number of insured unemployed Americans under all programs, including the benefit extension programs, numbered 8,517,545 in the March 26 period. According to the Household Survey, within the Employment Situation Report, the number of unemployed Americans was 13.5 million in March.

The highest insured unemployment rates in the week ending March 26 were in Alaska (6.2 percent), Pennsylvania (4.8), Puerto Rico (4.8), Oregon (4.7), Montana (4.6), Rhode Island (4.6), Wisconsin (4.6), Idaho (4.5), New Jersey (4.4), and California (4.3).

The largest increases in initial claims for the week ending April 2 were in Massachusetts (+2,575), Pennsylvania (+1,606), Ohio (+1,094), Illinois (1,013), and Georgia (+625), while the largest decreases were in California (-8,095), Texas (-2,913), Florida (-1,731), Missouri (-898), and Oregon (-733).

Article should interest investors in Paychex (Nasdaq: PAYX), Manpower (NYSE: MAN), Robert Half International (NYSE: RHI), 51Job Inc. (Nasdaq: JOBS), Monster World Wide (NYSE: MWW), Korn/Ferry International (NYSE: KFY), Administaff (NYSE: ASF), Kforce (Nasdaq: KFRC), TrueBlue (NYSE: TBI), Dice Holdings (NYSE: DHX), Kelly Services (Nasdaq: KELYA), SFN Group (NYSE: SFN), CDI Corp. (NYSE: CDI), Cross Country Healthcare (Nasdaq: CCRN), On Assignment (Nasdaq: ASGN), AMN Healthcare Services (NYSE: AHS), Barrett Business Services (Nasdaq: BBSI), Hudson Highland Group (Nasdaq: HHGP), StarTek (NYSE: SRT), RCM Technologies (Nasdaq: RCMT), VirtualScopics (Nasdaq: VSCP), American Surgical (OTC: ASRG.OB), Medical Connections (OTC: MCTH.OB), iGen Networks (OTC: IGEN.OB), St. Joseph (OTC: STJO.OB), General Employment Enterprises (NYSE: JOB), Total Neutraceutical (OTC: TNUS.OB), TeamStaff (Nasdaq: TSTF), Stratum (OTC: STTH.OB), Purespectrum (OTC: PSRU.OB), Corporate Resource Services (OTC: CRRS.OB).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Where Art Thou Housing Growth

Real Estate

The latest data from the Mortgage Bankers Association showed a decline in weekly mortgage activity. The spring selling season is aging quickly, so where art thou housing growth?

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Relative tickers: NYSE: BAC, NYSE: GS, NYSE: MS, NYSE: WFC, NYSE: TD, OTC: FMCC.OB, OTC: FNMA.OB, NYSE: PNC, NYSE: JPM, NYSE: BBT, NYSE: CIT, NYSE: BKU, Nasdaq: UBSI, NYSE: BK, Nasdaq: MBFI, NYSE: AF, NYSE: NYB, Nasdaq: HCBK, Nasdaq: PBCT, Nasdaq: FNFG, Nasdaq: CFFN, Nasdaq: WFSL, Nasdaq: ISBC, Nasdaq: NWBI, Nasdaq: STSA, NYSE: OCN, NYSE: FBC, NYSE: PFS, Nasdaq: COLB, Nasdaq: KRNY, Nasdaq: BRKL, Nasdaq: DCOM, Nasdaq: FFIC, Nasdaq: DNBK, OTC: FCNCA.PK, NYSE: SNV, Nasdaq: UBSI, Nasdaq: HMPR, Nasdaq: WSBC, Nasdaq: CHCO, Nasdaq: SASR, OTC: FCBN.OB, Nasdaq: SCBT, NYSE: WL, Nasdaq: WSFS, Nasdaq: SBSI, Nasdaq: STEL, Nasdaq: UBSH, Nasdaq: EGBN, Nasdaq: FBNC, Nasdaq: ABCB, Nasdaq: TBBK, Nasdaq: FCBC, Nasdaq: CCBG, Nasdaq: FISI, Nasdaq: NKSH, Nasdaq: CZNC, Nasdaq: CHFN, Nasdaq: SBCF, Nasdaq: TIBB, Nasdaq: AMNB, Nasdaq: UCBI, Nasdaq: MBRG, Nasdaq: HBOS, Nasdaq: ZION, Nasdaq: EWBC, NYSE: CYN, NYSE: BOH, Nasdaq: SIVB, Nasdaq: WABC, Nasdaq: CATY, Nasdaq: UMPQ, Nasdaq: GBCI, Nasdaq: PCBC, Nasdaq: PACW, NYSE: WAL, OTC: FBAK.OB, Nasdaq: FIBK, Nasdaq: NARA, Nasdaq: WCBO, Nasdaq: TCBK, Nasdaq: TBNK, Nasdaq: WCBO, Nasdaq: BMRC, Nasdaq: HAFC, NYSE: DIA, NYSE: SPY, Nasdaq: QQQQ, NYSE: DOG, NYSE: SDS, NYSE: QLD, NYSE: NYX, NYSE: ICE, Nasdaq: NDAQ

Where Art Thou Housing Growth?

The Mortgage Bankers Association (MBA) reported on Weekly Mortgage Activity for the period ending April 8, 2011. In the most recent week preceding this reporting, we tracked a spurt of contracting in mortgages tied to home purchases. The MBA attributed those to an impending deadline where-after FHA insurance would increase. We also highlighted the fact that FHA sponsored purchases would be delayed by the government shutdown that threatened last week. Some sort of extraordinary anomaly would seem to have been proven behind the spurt, as this week's report offered no reason for enthusiasm.

The Market Composite Index of mortgage activity declined by 6.7% on a seasonally adjusted basis in this latest measured period. Refinancing activity declined last week, and this week saw no help from mortgage rates to change matters. The average contracted rate on 30-year and 15-year fixed rate mortgages rose to 4.98% (from 4.93%) and to 4.17% (from 4.14%), respectively. This drove the Refinance Index to decline by 7.7%, and led the refinance share of overall mortgage activity to fall to 60.3%, from 61.2% in the week just prior.

Weakness in refinancing was also seen last week, but this time around, trouble was found across the board. The Purchase Index fell 4.7% from the prior week, but perhaps some of that was due to normalization from the previous week's anomalous spurt.

The bigger question to ask is, where art thou housing growth? Through April 8th, you are nowhere to be found. It would appear uncertainty from never or nether expected realm, lighting the Middle East ablaze, driving gasoline prices into desperate reaches, has the American consumer quite tight fisted. The real bad news is that I expect things to get worse, so hold off on that homebuilder liftoff we had previously foreseen, as these "other" factors overrule.

Editor's Note: Article should interest investors in Bank of America (NYSE: BAC), Freddie Mac (OTC: FMCC.OB), Fannie Mae (OTC: FNMA.OB), Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS), Wells Fargo (NYSE: WFC), Toronto Dominion (NYSE: TD), BB&T (NYSE: BBT), CIT (NYSE: CIT), Bank United (NYSE: BKU), First Citizens (OTC: FCNCA.PK), Synovus (NYSE: SNV), United Bankshares (Nasdaq: UBSI), Hampton Roads Bankshares (Nasdaq: HMPR), WesBanco (Nasdaq: WSBC), City Holding (Nasdaq: CHCO), Sandy Spring (Nasdaq: SASR), First Citizens (OTC: FCBN.OB), SCBT Financial (Nasdaq: SCBT), Wilmington Trust (NYSE: WL), WSFS Financial (Nasdaq: WSFS), Southside Bancshares (Nasdaq: SBSI), Stellar One (Nasdaq: STEL), Union First Market (Nasdaq: UBSH), Eagle Bancorp (Nasdaq: EGBN), First Bancorp (Nasdaq: FBNC), Ameris (Nasdaq: ABCB), The Bancorp (Nasdaq: TBBK), First Community (Nasdaq: FCBC), Capital City (Nasdaq: CCBG), Financial Institutions (Nasdaq: FISI), National Bankshares (Nasdaq: NKSH), Citizens & Northern (Nasdaq: CZNC), Charter Financial (Nasdaq: CHFN), Seacoast Banking (Nasdaq: SBCF), TIB Financial (Nasdaq: TIBB), American National (Nasdaq: AMNB), United Community (Nasdaq: UCBI), Middleburg Financial (Nasdaq: MBRG), Heritage Financial (Nasdaq: HBOS), Zions Bancorp (Nasdaq: ZION), East West Bancorp (Nasdaq: EWBC), City National (NYSE: CYN), Bank of Hawaii (NYSE: BOH), SVB Financial (Nasdaq: SIVB), Westamerica (Nasdaq: WABC), Cathay General (Nasdaq: CATY), Umpqua (Nasdaq: UMPQ), Glacier Bancorp (Nasdaq: GBCI), Pacific Capital (Nasdaq: PCBC), PacWest (Nasdaq: PACW), Western Alliance (NYSE: WAL), First National Alaska (OTC: FBAK.OB), First Interstate Bancsystem (Nasdaq: FIBK), Nara (Nasdaq: NARA), West Coast (Nasdaq: WCBO), TriCo (Nasdaq: TCBK), Territorial (Nasdaq: TBNK), Washington Banking (Nasdaq: WCBO), Bank of Marin (Nasdaq: BMRC), Hanmi (Nasdaq: HAFC), PNC Bank (NYSE: PNC), J.P. Morgan Chase (NYSE: JPM), United Bankshares (Nasdaq: UBSI), Bank of New York Mellon (NYSE: BK), MB Financial (Nasdaq: MBFI), Astoria Financial (NYSE: AF), New York Community (NYSE: NYB), Hudson City (Nasdaq: HCBK), People's United (Nasdaq: PBCT), First Niagra (Nasdaq: FNFG), Capitol Federal (Nasdaq: CFFN), Washington Federal (Nasdaq: WFSL), Investor’s Bancorp (Nasdaq: ISBC), Northwest Bankshares (Nasdaq: NWBI), Sterling Financial (Nasdaq: STSA), Ocwen (NYSE: OCN), Flagstar (NYSE: FBC), Provident (NYSE: PFS), Colombia Banking (Nasdaq: COLB), Kearny (Nasdaq: KRNY), Brookline (Nasdaq: BRKL), Dime Community (Nasdaq: DCOM), Flushing Financial (Nasdaq: FFIC), Danvers (Nasdaq: DNBK).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.