Oct 24, 2014, 2:07 pm EDT
When the markets go into correction mode, recent initial public offerings get whacked. Because IPOs tend to carry more risk, investors are more likely to dump them when fear is high.
And recently, we’ve gotten a pretty stark reminder of that.
Over the past few weeks, a number of IPOs have been bludgeoned pretty hard. Consider that year-to-date, roughly half of the 222 U.S.-listed IPOs are in negative territory, with 81 currently sporting double-digit losses. Read
Oct 20, 2014, 2:32 pm EDT
Nine new stocks were expected to hit the markets last week, but only five ended up completing their offerings, and of those, just two posted positive first-day returns.
You can blame a whole lot of market volatility for that.
This week is a little more reserved, with only five new stocks coming live … and of them, most are small, and one (EndoStim, which you can read about here) is a holdover from last week. For now, let’s take a look at the newest offerings: Read
Oct 20, 2014, 9:33 am EDT
It has been about a month since Alibaba (BABA) pulled off the biggest IPO in history, raising more than $25 billion. Yet the company has not escaped the wrenching correction in the equities markets. So far, Alibaba stock is off 10% from its high.
But this could be a nice entry point for investors interested in Alibaba stock. The fact is that BABA stock should benefit from strong long-term trends in its businesses, such as its ecommerce marketplaces, the cloud and payments.
There may also be a nice short-term boost from the expiration of the quiet period — which comes on October 29. Read
Oct 14, 2014, 9:32 am EDT
Online home furnishings retailer Wayfair (W) gained 30% in its first day trading as a public company. But in the days since, Wayfair stock has lost all of those early gains.
Those who bought Wayfair stock at the open October 2 are now down more than 20%, proving exactly why buying an IPO on the first day of trading is generally a bad idea.
Some of that drop is due to jittery markets. However, it’s also clear that Wayfair has its work cut out for it in the world of online retail. Competition is bloodthirsty; although it was able to generate almost $1 billion in revenue in 2013, there’s concern its momentum will stall as a result of its brand anonymity. Read
Oct 13, 2014, 11:18 am EDT
Nine new stocks were supposed to hit the markets last week, but only seven managed to pull off their deals. With the tumult in the equities markets, there was lots of pressure on IPOs. Among last week’s deals, only four posted gains, with the largest one being Diplomat Pharmacy (DPLO), up about 23%.
For the upcoming week, the difficulties will likely continue. After all, many of the news stock are biotech companies, which generally are shunned when markets are on the risk-off mode.
Let’s take a look at the new stocks that plan to brave the markets this week: Read
Oct 10, 2014, 12:36 pm EDT
Despite a rough market, Dave & Buster’s (PLAY) was able to pull off its IPO today. But it wasn’t easy. The company issued 5.9 million shares at $16 each, which was at the low end of the expected $16 to $18 price range.
But so far in today’s trading, the stock price on the Dave & Buster’s IPO is up about 11%.
Founded in 1982, the company’s motto is “Eat, Drink, Play, Watch Sports!” This involves a full-on menu with items like gourmet pastas, choice-grade steaks and premium sandwiches as well as a variety of beers and signature cocktails. To provide more variety, Dave & Buster’s changes the menu three times a year. And yes, there should be no worry about being bored while eating since there are more than 100 high-definition big-screen televisions in a typical venue. Read