Box IPO: It Could Be An Investor Trap

Jan 23, 2015, 11:57 am EST
Box IPO: It Could Be An Investor Trap

Box Inc, (NASDAQ:BOX) which operates an enterprise cloud platform for storage and collaboration, pulled off its IPO today. The company issued 12.5 million shares at $14 each, which was above the range of $11 to $13.

And so far in today’s trading, the BOX stock is up about 68%. But as I’ve noted at the IPOPlaybook.com, investors need to be wary of this deal.

Now there certainly some positives to the Box IPO. The CEO and co-founder of the company, Aaron Levie (who I’ve met with several times), is a great promoter of the company and has built a strong brand. This has helped to create a large customer base, which includes more than 44,000 organizations. They range from small businesses to large enterprises like Ameriprise Financial, Inc. (NYSE:AMP), Gap Inc (NYSE:GPS), and Viacom, Inc. (NASDAQ:VIAB). Read 

Shake Shack IPO – Should You Snag SHAK Stock?

Jan 20, 2015, 2:32 pm EST
Shake Shack IPO – Should You Snag SHAK Stock?

Shake Shack is wasting little time getting its initial public offering to market.

We got the initial S-1 filing on Dec. 29, and now we’ve got a pricing on the Shake Shack IPO — the company will issue 5 million shares at a range of $14 to $16, listing as the ticker “SHAK.”

Assuming the deal is struck at the midpoint of that range, the market cap will be about $533 million. But it’s a good bet that Shake Shack’s valuation could more than double on its debut, which is expected to hit the market next week. Read 

Etsy Crafting an IPO for Q1

Jan 14, 2015, 11:47 am EST
Etsy Crafting an IPO for Q1

According to a Bloomberg report, Etsy is gearing up for an IPO, which could hit the markets sometime during the current quarter. The company, which operates a site that allows people to sell their crafts, has retained Goldman Sachs (GS) and Morgan Stanley (MS) to lead the deal. However, an S-1 has yet to be filed. Source: Wikipedia

So, will an Etsy IPO be good for investors?

Well, let’s first get a little background on the company: Back in the summer of 2005, Rob Kalin looked across the web for a good online marketplace to sell his handmade wooden computers. The search was fruitless as nothing impressed him. So he started his own site and teamed up with some of his friends. After working tirelessly for a couple months from Rob’s Brooklyn apartment, they launched Etsy. Read 

The Box IPO Is Almost Here – Really!

Jan 9, 2015, 12:08 pm EST
The Box IPO Is Almost Here – Really!

Box, which operates a cloud storage platform, is close to pulling off its IPO. The company expects to issue 12.5 million shares at a range of $11 to $13, which would put the valuation at about $1.6 billion. The deal is likely to hit the markets within the next couple weeks and will list on the NYSE under the ticker of “BOX.”

While the timing is pretty good for a Box IPO, investors should still remain cautious.

First, let’s take a look at the history of Box: While at USC in 2004, Aaron Levie got the idea for the company while doing a school project, which evaluated cloud storage solutions. He soon realized that the market was wide open. So he dropped out of school and wasted no time in getting Box launched. Read 

I-Bankers Look At Another Huge Year for IPOs

Jan 8, 2015, 2:30 pm EST
I-Bankers Look At Another Huge Year for IPOs

According to the accounting firm BDO USA, it looks like IPOs will be a winner in 2015 as well. This is according to its annual survey of 88 investment bankers, who believe that the number of new stocks will increase by 2%, the amount raised will reach nearly $85 billion and the average return will be about 12%. Source: ©iStock.com/pichet_w

If this turns out to be the case, it will be impressive. Keep in mind that last year saw the most activity for IPOs since the boom of 2000. So yes, Wall Street certainly appears to be particularly bullish.

According to Renaissance Capital, there are already a whopping 369 companies that have filings for public offerings, up 44% over 2013. Read 

El Pollo Loco Stock Looks Tasty After Selloff

Jan 6, 2015, 12:36 pm EST

Shares in El Pollo Loco Holdings Inc. (LOCO) have offered a crazy — and lately miserable — ride since going public last summer, but some some Wall Street upgrades offer hope for upside, even as LOCO stock remains as risky as ever.

El Pollo Loco recently fell below its July initial public offering closing price of $24 a share, something that was unthinkable just a couple of months ago. But, hey, in hindsight, LOCO stock blasted off with such force after its IPO, it was begging for some kind of fall.

Shares in the regional restaurant chain priced at $15 and opened at $19. Within a couple of weeks, LOCO was hitting levels above $40. Read 

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