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Apr 30, 2000

Open market

The newest high-flying stocks are based on a product that's given away free. How do Linux companies explain the paradox?

It was the hottest first day in Nasdaq history. On February 10, 1999, VA Linux Systems rose from its initial price of $30 to almost $220, a record-breaking first-day gain of 733 percent.The meteoric rise of the stock seemed to take just about everyone by surprise, including VA Linux itself. Its chief executive Larry Augustine and board member Eric Raymond immediately got busy on the phone and in the media trying to talk it down. 'It's not that I don't believe in the company or the ideas behind

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