YUME’s Earnings Tumble Is Only the Beginning

Feb 28, 2014, 4:20 pm EDT
YUME’s Earnings Tumble Is Only the Beginning

YuMe (YUME), which operates an online video ad network, has continued to exact pain on its shareholders. Its latest earnings report was a huge disappointment. In today’s trading, YUME stock is off by 16%, down below $7.

Keep in mind that the company went public in August at $9.

In the fourth quarter, YUME reported revenues of $54 million (up about 19%) and earnings of 6 cents per share. However, the Street was looking for much more, at least on the top-line. The consensus for revenues was for $59.53 million. (Although YUME did beat by a penny on earnings.) Read 

Biomet IPO: Medical Devices Company Could Raise $1 Billion

Feb 27, 2014, 1:31 pm EDT
Biomet IPO: Medical Devices Company Could Raise $1 Billion

According to people close to the company, a Biomet IPO could be on the way, which would add another public player in the medical devices space.

The process still is in the early stages, but Reuters is reporting that people close to the company have said Biomet has already selected Bank of America (BAC), Goldman Sachs (GS) and JPMorgan (JPM) as the lead underwriters, and the deal could raise nearly $1 billion.

Biomet, which got its start back in 1977, develops medical devices primarily for musculoskeletal purposes. These include things like orthopedic joint replacement devices, bone cements and accessories, autologous therapies and dental reconstructive implants, electrical bone growth stimulators, bone substitute materials and spinal products. Read 

HLT Stock Slips After First Hilton Earnings Report

Feb 27, 2014, 1:23 pm EDT
HLT Stock Slips After First Hilton Earnings Report

In December, Hilton Worldwide Holdings (HLT) pulled off a $2.35 billion IPO. On its first day of trading, the stock climbed about 7.5%. But Hilton’s first earnings report as a public company was a bit lackluster. So far in today’s trading, HLT stock is down about 2%.

The Hilton earnings report was a mixed bag. On the positive side of things, revenues rose by 13% to $2.64 billion, which was above the Street consensus of $2.46 billion. However, the profits were subpar.

When adjusting for one-time items, Hilton earnings came to 11 cents per share, which was a one penny increase on a year-over-year basis. However the analysts’ consensus was for a much more robust 17 cents per share on HLT stock. Read 

Virtu Financial and Markit Confidentially File for IPOs

Feb 26, 2014, 2:12 pm EDT
Virtu Financial and Markit Confidentially File for IPOs

While high-frequency trading is murky — and controversial — we will soon get more insight into the business. Two top operators in the business, Markit and Virtu Financial, have filed for IPOs.

However, we will not get the S-1 forms until a couple months because each firm elected to use the “confidential filing” provision of the JOBS Act (the law was passed several years ago to make IPOs easier for smaller firms).

Despite this, there are still some information on the firms. First, let’s take a look at the Markit IPO. Based in London, the company is a Big Data provider, with a focus on complex securities. For example, the firm helps with getting pricing, forecasting, risk management and finding counterparties. As seen with mega companies like Bloomberg, the market potential is massive. And this should get investors excited in a Markit IPO. Read 

Kakao IPO: The WhatsApp of Korea Prepares for Offering

Feb 26, 2014, 6:00 am EDT
Kakao IPO: The WhatsApp of Korea Prepares for Offering

According to a report in the Wall Street Journal, Kakao is preparing for an IPO. The company is the developer of the most popular messaging service in Korea. In other words, given the $19 billion price tag that Facebook (FB) paid for WhatsApp, the timing of a Kakao IPO looks spot-on.

The company’s service, called Kakao Talk, is free and available on Apple’s (AAPL) iOS, Google’s (GOOG) Android, BlackBerry (BBRY) and Microsoft’s (MSFT) Window Phone. The app allows for texts as well as phone calls. But users can also share photos and videos.

Launched in 2010, KakaoTalk has grown to 133 million users. And there are only 50 million people in Korea. That means Kakao has been getting traction in other parts of Asia like Malaysia, the Philippines and Indonesia. Read 

China Game Operator Chukong Wants a Crushing IPO, Too

Feb 25, 2014, 2:06 pm EDT
China Game Operator Chukong Wants a Crushing IPO, Too

Chukong, top mobile gaming operator in China, is prepping for an IPO in the U.S. market in yet the latest sign that the gaming industry is heating up, and that investors are starting to forget about Zynga’s (ZNGA) disastrous deal.

Chukong is a fairly young company, having only gotten its start back in 2010. Naturally, it has a mobile-first focus, and it currently is benefiting from a breakout hit game called Fishing Joy that currently boasts more than 200 million users.

It’s not clear how much revenues the company generates, but if a game makes the top of the charts on app stores, it is likely to bring in a nice haul. Just look at King Digital Entertainment, which is the maker of Candy Crush Saga game (with 93 million players each day) and itself recently filed to go public. King is enjoying a net profit of $578 million on revenues of $1.88 billion (and those revenues grew from a mere $164 million just a year prior). Read 

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