6 New Stocks to Watch: Cheetah Mobile on Deck

Cheetah Mobile leads the list of new stocks this week

   

When it comes to new stocks, Wall Street has become suddenly stingy. Consider that the past 16 consecutive IPOs have priced below the midpoints of their original ranges, according to Renaissance Capital. That hasn’t happened in 15 years!

Then again, the market for new stocks really got overheated. So some type of correction was expected — and probably healthy. Yet investment bankers are still trying to get deals done. For example, this week there are 6 new stocks poised to hit the markets.

Let’s take a look:

New Stocks to Watch: Alder Biopharmaceuticals (ALDR)

Expected Offering Date: Thursday

Alder Biopharmaceuticals is a clinical-stage biotech operator that focuses on the efficient production of therapeutic antibodies. The core technology is MabXpress, which allows for the targeting of diseases that traditionally have not been addressed by antibodies.

The lead candidate is ALD403 and has shown efficacy for migraine prevention. Then there is Clazakizumab, which is for rheumatoid arthritis. For this drug, Alder has forged a collaboration with Bristol-Myers Squibb (BMY).

No doubt, the opportunity is massive. From 2012 to 2016, the market for rheumatoid arthritis therapies is expected to climb from $12 billion to $15 billion.

Alder plans to offer 7.2 million shares at a range of $13 to $15. The lead underwriters include Credit Suisse (CS) and Leerink Partners.

New Stocks to Watch: Cheetah Mobile (CMCM)

Expected Offering Date: Thursday

Based in China, Cheetah mobile manages a platform that allows for speedier and simpler mobile experiences. There are roughly 340.7 million monthly active users for all the applications, which target areas like security, junk file cleaning, memory/battery boosters and photo sharing. What’s more, the company has more than 380 partners, which include biggies like Alibaba, Baidu (BIDU) and Tencent (TCEHY).

Growth has certainly been robust. From 2011 to 2013, revenues spiked from RMB 140.1 million to RMB 749.9 million ($123.9 million). In fact, the company has also been able to post profits along the way. Last year, the net income came to $10.2 million.

Cheetah Mobile plans to issue 12 million shares at a range of $12.50 to $14.50. The lead underwriters include Morgan Stanley (MS), J.P. Morgan (JPM) and Credit Suisse.

New Stocks to Watch: Dorian (LPG)

Expected Offering Date: Friday

Dorian is a shipping company that owns a fleet of Very Large Gas Carriers, which have cargo-carrying capacity of greater than 80,000 cbm. The firm has contracts for the construction of 19 new fuel-efficient vessels.

Dorian believes the market opportunity looks promising, especially with the increase in demand for shale oil. Some of the company’s customers include Statoil and Royal Dutch Shell (RDS.B).

For the last six months of 2013, Dorian posted revenues of $19.8 million and adjusted EBITDA of $9.8 million.

As for the IPO, the company intends to issue 7.1 million shares at a range of $18 to $20. The lead underwriters include J.P. Morgan, UBS Investment Bank (UBS), Clarkson Capital Markets and Wells Fargo Securities (WFC).

New Stocks to Watch: GasLog Partners (GLOP)

Expected Offering Date: Thursday

The company owns a fleet of three vessels for liquefied natural gas, or “LNG.” The average terms of the charters — the contracts for transportation — go through 2018 or 2019. The controlling shareholder is Peter Livanos, whose family’s shipping activities go back more than 100 years.

GasLog currently has the option to buy up to 12 more vessels. Then again, going forward it looks like the company may also focus on purchasing companies as well. Of course, the IPO will be a key part of the strategy.

Last year, revenues came to $64.1 million and the adjusted EBITDA was $49.6 million.

GasLog plans to offer 8.4 million shares at a range of $19 to $21. The lead underwriters include Citi (C), Credit Suisse, Wells Fargo, Barclays (BCS), Evercore Partners (EVR) and UBS Securities.

New Stocks to Watch: K2M Group Holdings (KTWO)

Expected Offering Date: Thursday

K2M is a global medical device company that is focused on complex spine technologies, helping with scoliosis, traumas and tumors. For the most part, the procedures receive higher rates of positive insurance coverage and are generally minimally invasive. Over the past 10 years, the company has commercialized 57 product lines.

From 2008 to 2013, revenues have gone from $60.4 million to $157.6 million. However, the company has been losing money. Last year, the company posted a net loss of $37.9 million.

K2M plans to issue 8.8 million shares at a range of $16 to $18. The lead underwriters include Piper Jaffray, Barclays and Wells Fargo Securities.

New Stocks to Watch: Tuniu (NASDAQ:TOUR)

Expected Offering Date: Friday

Tuniu is a top online leisure travel operator in China, with a focus on packaged tours. The company has arrangements with more than 3,000 travel suppliers, and the product portfolio consists of more than 100,000 stock-keeping units.

From 2011 to 2013, revenues jumped from RMB 765.5 million to RMB1,949.7 million ($322.1 million). But last year, the company posted a net loss of RMB 79.6 million ($13.2 million).

Tuniu expects to offer 8 million shares at a range of $9 to $11. The lead underwriters include Morgan Stanley, Credit Suisse and China Renaissance Securities.

Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO StrategiesAll About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, http://investorplace.com/ipo-playbook/new-stocks-to-watch-cheetah-mobile/.

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