Last week, 8 IPOs hit the markets, with the average return a hefty 32%. It certainly helped that most of the companies were either cloud operators or biotech firms.
As for the current week, expect the good times to continue. No doubt, much of the attention will be on King Entertainment, which is the developer of the widely popular Candy Crush Saga game. The deal could wind up being one of the biggest for the year.
Let’s take a look at each of the new stocks to watch for this week:
New Stocks to Watch — 2U (TWOU)
2U operates a cloud-based platform that helps universities deliver online education. Some of the services include online marketing support, enrollment, mobile apps, live streaming of classes and analytics.
From 2011 to 2013, revenues went from $29.7 million to $83.1 million (2U gets paid a percentage of the tuition per pupil enrolled). But the company has remained unprofitable during this period.
New Stocks to Watch — Aerohive Networks (HIVE)
Aerohive Networks has a cloud-managed mobile networking platform. For the most part, it helps to manage the complexities of Wi-fi-enabled smartphones, tablets and laptops in enterprises.
From 2011 to 2013, revenues jumped from $34 million to $107.1 million. Although, during this period, the net losses increased from $14.8 million to $33.2 million. Aerohive has roughly 13,100 end-customers.
The company plans to issue 7.5 million shares at a range of $9 to $11, and the lead underwriters include Goldman Sachs and BofA Merrill Lynch (BAC).
New Stocks to Watch — Applied Genetic Technologies (AGTC)
Applied Genetic Technologies is a biotechnology company that has built a gene therapy platform to help patients who suffer from inherited orphan diseases in ophthalmology. All the drug candidates are in the preclinical stage.
The approach of Applied Genetic Technologies is to use a viral vector. That is, it makes a copy of a gene that is delivered through a virus.
The company plans to offer 3.6 million shares at a range of $13 to $15, and the lead underwriters include BMO Capital Markets and Wedbush PacGrow.
New Stocks to Watch — Bluerock Residential Growth REIT (BRG)
With the IPO, Bluerock Residential Growth REIT — which is structured as a real estate investment trust (REIT) — will get ownership in nine apartments located primarily in the Southeastern United States. In all, there will be 2,620 units, with an occupancy rate of 93%.
Last year, the company’s combined revenues came to $22.3 million. But there was a net loss of $5.2 million.
The company plans to issue 3.3 million shares at $15 per share, and the lead underwriter is Wunderlich Securities.
New Stocks to Watch — Everyday Health (EVDY)
Everyday Health is a top online provider of health and wellness content and solutions. Last year, its sites attracted an average of 43 million consumers and 500,000 healthcare professionals (on a monthly basis). Of course, the company has optimized the platform for mobile devices. In all, there are 26 apps that have been downloaded 15 million times. Some of the brands include MedPage Today, What To Expect, Mayo Clinic, Jillian Michaels and The South Beach Diet.
From 2011 to 2013, revenues grew from $96.2 million to $134.9 million. But last year there was still a net loss of $18.2 million.