Jul 21, 2014, 12:07 pm EDT
Last week, there were some red-hot IPOs. Just look at TubeMogul (TUBE), which was up 64% and Sage Therapeutics (SAGE), which spiked 67%.
Despite these success, there was actually underlying weakness in the IPO market. Many deals saw reductions in the pricing in order to gin up demand. Then again, there has been a flood of IPOs lately, which will continue this week, with 14 new stocks on deck. (Three of them are holdovers from last week: Medical Transcription Billing, Microlin Bio and Pfenex).
So let’s take a look at each: Read
Jul 18, 2014, 11:03 am EDT
The month of July, at least for me, has become a time for picking recent IPOs whose new stocks are down but not necessarily out. In July 2012 I picked five IPOs whose new stocks were underperforming as public companies. I repeated the exercise last July and now I’m going to do this same this year.
Before I jump in let me fill you in on how the 10 stocks have done since I selected them. Only one — Green Dot (GDOT) — has lost money; it’s down 27% in the two years since I recommended it through July 16. Otherwise, the remaining nine picks have delivered returns almost identical to the S&P 500.
While this might not seem like a big deal consider that all 10 picks were in negative territory when I recommended them. These new stocks had every possibility to continue falling — but didn’t. Instead, they turned around. Read
Jul 14, 2014, 12:35 pm EDT
Because of the 4th of July holiday, there were no IPOs last week. Yet this did not stop the momentum. For the upcoming week, there are 11 new stocks on deck.
The new stocks span a diverse set of industries like the cloud, biotech and energy. But with the market setting new highs and some analysts beginning to urge caution, will there be enough enthusiasm to propel these deals higher? We won’t know until the end of the week.
So let’s take a look at each of the deals: Read
Jul 11, 2014, 1:28 pm EDT
Alibaba IPO Timing
We’ve got a timeline.
According to a report in The Wall Street Journal, Chinese Internet company Alibaba expects to launch its much-anticipated IPO process at the end of July, which means BABA stock could start trading on the New York Stock Exchange by mid-August. Read
Jul 10, 2014, 1:23 pm EDT
Potbelly (PBPB), an operator of sandwich shops, pulled off a huge IPO back in October, with the stock soaring 120% to $34 on its first day of trading. But since then, life as a public company has been downright miserable. Just look at today’s chart, in which PBPB stock falls off a cliff. As of now, the price is hovering just above $11.
What’s going on here? Well, the growth rate is slowing down.
Just look at the latest announcement from the company, which provided a warning for fiscal second-quarter earnings. PBPB expects to post a meager 6.9% increase in sales to $83.6 million, which compares to the Wall Street estimate of $87 million. Read
Jul 10, 2014, 6:00 am EDT
When investors think of big gains from newly minted stocks, they tend to focus on the technology sector. That’s been true as some recent big tech IPOs — like GoPro (GPRO) have surged since hitting the ticker tape this year. Tech has certainly been the reigning IPO king.
At least until fracking came to town.
As the U.S. has undergone its energy renaissance, the appetite for new energy stocks has been great. How great, exactly? There were seven new energy stocks that went public during the second quarter alone. Perhaps more importantly, data from Dealogic shows that those IPOs in the energy sector saw an average first weekly gain of nearly 19%. Read