Box IPO: Cloud-Hungry Wall Street Will Get Another Deal

Jan 31, 2014, 3:11 pm EST
Box IPO: Cloud-Hungry Wall Street Will Get Another Deal

We finally got word on one of the more anticipated public offerings of the year — cloud operator Box has filed for an IPO.

There are no details yet on the Box IPO because the filing was a confidential one, as part of the Jumpstart Our Business Startups Act or JOBS Act, which is meant to make things easier for smaller companies. The open filing will probably not be made public until a couple months.

Box got its start back in 2005. Founders Aaron Levie and Dylan Smith were students at the time, and they saw an opportunity to leverage the cloud to provide for better access and sharing of files. Growth was strong, and Box attracted lots of attention, even snagging an investment from billionaire Mark Cuban. Read 

Nasdaq Jumps Into the Pre-IPO Game

Jan 27, 2014, 2:00 pm EST
Nasdaq Jumps Into the Pre-IPO Game

When it comes to the IPO market, the Nasdaq (NDAQ) has usually been the top player, especially with hot tech companies. But over the past few years, the exchange has lost ground to its rival, the NYSE. But the Nasdaq is fighting back — and yes, the move involves leveraging technology.

First of all, last year was really a wake-up call for the Nasdaq. Despite a roaring bull market — and a comeback in public offerings — it had some challenges with its IPO business. Part of the reason was the mishandled Facebook (FB) IPO, which may have been a factor for companies like Twitter (TWTR) choosing the NYSE for their IPOs. In 2013, the NYSE snagged 25 tech and Internet deals while the Nasdaq handled 23 (according to a report from Dealogic).

But the Nasdaq has a plan: building a trading platform for pre-IPO companies. This is now possible because of the relaxed regulatory mandates from the so-called Jumpstart Our Business Startups (JOBS) Act, which allows private companies to have as many as 2,000 shareholders. Read 

Malibu Boats Among 8 New Stocks to Watch This Week

Jan 27, 2014, 12:29 pm EST

So far this year, only eight new stocks have hit the public markets … and the overall performance has been lackluster. Five of the new stocks are either in negative territory or have posted just single-digit returns. Source: Flickr

The follow-up question is obvious: Is this is a sign of trouble ahead? Unfortunately, it could be — especially if the equities markets remain volatile.

Despite this, Wall Street is still pushing ahead with dealmaking. As for the current week, we have another eight new stocks to watch. Read 

Care.com IPO Launches Strong

Jan 24, 2014, 2:04 pm EST
Care.com IPO Launches Strong

Care.com (CRCM), which operates an online marketplace for caregivers, pulled off its IPO by issuing 5.4 million shares at $17, which was above the expected $14 to $16 price range. And so far in today’s trading, CRCM stock is up another 40%.

Care.com is the mastermind of Sheila Lirio Marcelo. She was part of the “sandwich generation,” which meant having to care for both her children and parents. She faced lots of challenges finding quality care solutions, so she wondered: Could technology help?

It could, of course, and Marcelo launched Care.com in 2006, getting instant traction. In fact, it is now the largest player in the space, with 9.7 million members spanning 16 countries. The main services include child care, senior care, special needs care and even pet care. There are also service offerings for tutoring and housekeeping. Read 

Party City Tries Again for IPO

Jan 23, 2014, 1:34 pm EST
Party City Tries Again for IPO

Party City, which is a retail chain of party supplies, has filed for an IPO. This is the second try at a public offering (the previous filing came in 2011). But given the strength in the markets lately, the odds for a successful Party City IPO look much better now.

Founded in 1947, Party City currently operates more than 880 locations. A key part of the company’s growth has been though aggressive acquisitions, which has helped to consolidate the fragmented industry.

But Party City also has its own design and manufacturing capabilities. As a result, the company has more control over quality, as well as opportunities to enhance margins. It also means it can distribute its products — which count more than 40,000 — to other retailers. Read 

SC Stock: Santander IPO Goes Into Overdrive

Jan 23, 2014, 11:54 am EST
SC Stock: Santander IPO Goes Into Overdrive

After a slow start to the year, we finally got a standout IPO: Santander Consumer USA (SC). The company, which is the car financing division of mega Spanish bank Banco Santander SA (SAN), priced 75 million shares at $24 each, making the Santander IPO the first hit of the year.

And so far in today’s trading, SC stock is up about 8% after the Santander IPO (not a bad performance given that the Dow is off by 180 points). The lead underwriters on the deal included Citi (C) and JPMorgan Chase (JPM).

Founded in 1995, SC is the leader in the U.S. consumer car financing market, with a focus on subprime customers (those who have FICO scores below 660). While the market can be risky, the company has built a sophisticated analytics system that controls the exposures and helps with the pricing of loans. This system has helped the company add $34 billion in financing since 2008. Read 

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