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.
With that in mind, here are five IPOs whose stock prices have fallen below their initial pricing but are ready to turn around: