14 New Stocks to Watch – GoPro Ready To Ride the IPO Wave

Wall Street is rushing to get deals done for the end of the quarter

   

Last week showed that the IPO market is in pretty good shape, with 10 new stocks hitting the market. There was also renewed strength from the riskier biotech sector. Kite Pharma (KITE) surged by 71% and ZS Pharma (ZSPH) posted a gain of 58%.

As  for the current week, the good times seem likely to continue. Consider that there are 14 IPOs on the calendar for this week (as well as a holdover from last week, Syndax Pharmaceuticals).

So let’s take a look at the new stocks to watch for this week:

New Stocks to Watch: Adeptus Health (ADPT)

Expected Offering Date: Thursday

The company operates the First Choice Emergency Rooms, which is the largest network of independent freestanding emergency rooms in the United States. There are currently 32 facilities in places like Texas and Colorado. By the end of the year, the company expects to have 53 facilities.

From 2012 to 2013, revenues jumped from $72.6 million to $102.9 million, while adjusted EBITDA climbed from $13.7 million to $16 million. Adeptus Health plans to offer 4.9 million shares at a range of $19.00 to $22.00. The lead underwriters include Deutsche Bank (DB), Goldman Sachs (GS), Evercore Partners and Morgan Stanley (MS).

New Stocks to Watch: Ambrx (AMBX)

Expected Offering Date: Wednesday

Ambrex is a clinical-stage biotechnology company that develops protein therapeutics known as bio-conjugates. For the most part, this approach is believed to provide better targeting.

Two drugs, ARX201 and ARX328, have completed Phase 2b trials. The company also has collaborations with companies like Bristol-Myers Squibb (BMY), Merck (MRK) and Eli Lilly (LLY). So far, these arrangements have provided more than $200 million in non-dilutive funding.

Ambrx plans to issue 5.4 million shares at a range of $12 to $14. The lead underwriters include Stifel and Wells Fargo Securities (WFC).

New Stocks to Watch: Amphastar Pharmaceuticals (AMPH)

Expected Offering Date: Wednesday

Amphastar is a specialty pharmaceutical company that focuses on generic and proprietary injectable and inhalation products. There are currently 15 products selling in the US market as well as 20 in the pipeline.

From 2012 to 2013, revenues grew from $204.3 million to $229.7 million. However, net income fell from $18 million to $11.9 million. Amphastar expects to offer 7.4 million shares at a range of $10 to $12. The lead underwriters include Jefferies, BMO Capital Markets and Piper Jaffray.

New Stocks to Watch: GoPro (GPRO)

Expected Offering Date: Thursday

GoPro company is the developer of wearable devices that make it easy to take photos and videos while engaged in sports like surfing. GoPro has also been savvy with social media, integrating with Twitter (TWTR), Facebook (FB) and Google’s (GOOG) YouTube.

From 2011 to 2013, revenues surged from $234.2 million to $985.7 million. Best of all, the company has also been consistently profitable. Last year, net income came to $60.6 million. GoPro expects to issue 17.8 million shares at a range of $21 to $24. The lead underwriters include JP Morgan (JPM), Citi (C) and Barclays (BCS).

New Stocks to Watch: Imprivata (IMPR)

Expected Offering Date: Wednesday

Imprivata provides authentication and access management technology for the healthcare industry. The system makes it possible to allow secure access to patient medical records and other sensitive information. There are more than 2.8 million licensed users on the platform.

From 2011 to 2013, revenues rose from $41.4 million to $71.1 million, but the company posted a net loss of $5.5 million last year. Imprivata plans to issue 5 million shares at a range of $14 to $16. The lead underwriters include JP Morgan and Piper Jaffray.

New Stocks to Watch: KineMed (KNMD)

Expected Offering Date: Wednesday

The company develops a proprietary biomarker platform to help with drug development. The tests measure the rate of activity of critical biological pathways for various diseases.

Over the years, the company has entered over 100 revenue-generating collaborations. Some of the partners include Glaxo Group (GSK), Pfizer (PFE), Takeda Pharmaceutical and Amgen (AMGN). KineMed expects to sell 4.5 million shares at a range of $6.50 to $7.50. The lead underwriter is Feltl and Company.

New Stocks to Watch: Materialise (MTLS)

Expected Offering Date: Wednesday

Founded in 1990s, Materialise is a 3D printing operator, with a focus on additive manufacturing. The company has a portfolio of 62 issued patents and 101 pending patents.

Last year, revenues increased by 16.3% to €68.7 and EBITDA came to €7.6 million. The installed base includes more than 8,000 licenses. Materialise expects to sell 8 million shares at a range of $12 to $14. The lead underwriters include Piper Jaffray and Credit Suisse (CS).

New Stocks to Watch: The Michaels Companies (MIK)

Expected Offering Date: Thursday

Michaels Stores is a top crafts retailer, with 1,145 Michaels locations as well as 118 Aaron Brothers stores. Each has about 36,000 stock-keeping units (“SKUs”) in arts, crafts, scrapbooking, floral, framing, home décor and seasonal offerings. A key differentiation is a wide selection of private branded products like Recollections, Artist’s Loft and Loops & Threads.

In the first quarter of fiscal 2014, net sales rose by 5.9% to $1.05 billion, and comparable store sales grew by 3.8%. Cash flows have also remained substantial. From fiscal 2009 to fiscal 2013, the company generated about $2 billion in net cash from operations.

Michaels expects to issue 27.8 million shares at a range of $17.00 to $19.00. The lead underwriters include JP Morgan, Goldman Sachs, Barclays and Deutsche Bank.

New Stocks to Watch: Minerva Neurosciences (NERV)

Expected Offering Date: Thursday

Minerva is a clinical-stage biotech company that is focused on treating diseases that impact the central nervous system. One of the lead products is MIN-101, which is for schizophrenia. The company is also developing MIN-117, a treatment for patients that suffer from major depressive disorder, or MDD.

Based on research from Datamonitor, about 4.7 million are afflicted with schizophrenia and 32 million suffer from MDD (in the US, Japan, France, Germany, Italy, Spain and the UK). So the market potential is certainly there.

Minerva plans to issue 5.5 million shares at a range of $10 to $12. The lead underwriters is Jefferies.

New Stocks to Watch: NextEra Energy Partners (NEP)

Expected Offering Date: Friday

NextEra Energy Partners, which is a carve out of NextEra Energy (NEE), is a limited partnership that owns and operates clean energy projects. The focus is primarily on generating stable cash flows so as to payout an attractive dividend.

Last year, revenues came to $141.8 million and adjusted EBITDA was $99.6 million. NextEra Energy Partners expects to issue 16.3 million shares at a range of $19 to $21. The lead underwriters include BofA Merrill Lynch (BAC), Goldman Sachs (GS) and Morgan Stanley.

New Stocks to Watch: ServiceMaster (SERV)

Expected Offering Date: Thursday

ServiceMaster operates various home services businesses, which include Terminix (termite and pest control), American Home Shield (home warranties), ServiceMaster Restore (disaster restoration) and more. The company has a network of more than 7,000 locations.

Last year, revenues hit $2.29 billion and adjusted EBITDA was $450 million. The Terminix segment represented about 57% of overall revenues. ServiceMaster plans to issue 35.9 million shares at a range of $18 to $21. The lead underwriters include J.P. Morgan, Credit Suisse, Goldman Sachs and Morgan Stanley.

New Stocks to Watch: Taggares Agriculture (TAG)

Expected Offering Date: Friday

Founded in January, Taggares Agriculture plans to acquire and operate profitable farmland in the Pacific Northwest. The focus will be on crops like tree fruit, stone fruit and grapes. What’s more, the properties will need to have secure water rights, re-development potential and consistent yields.

Taggares Agriculture plans to issue 7 million shares at a range of $6 to $7. The lead underwriters include Janney Montgomery Scott and Roth Capital.

New Stocks to Watch: TCP International (TCPI)

Expected Offering Date: Thursday

Founded in 1993, TCP International is a top provider of energy efficient LED and CFL lighting technologies. Some of the customers include Home Depot (HD) and Walmart (WMT). From 2011 to 2013, sales spiked from $263.8 million to $428.9 million, while the net income went from $3.3 million to $8.2 million. But the growth is likely to continue. According to research from McKinsey, the global LED and CFL markets are forecasted to grow from $22.1 billion in 2011 to $87.4 billion by 2020.

TCP International expects to issue 7.1 million shares at a range of $13 to $15. The lead underwriters include Deutsche Bank (DB) and Piper Jaffray.

New Stocks to Watch: Xunlei (XNET)

Expected Offering Date: Wednesday

Xunlei is one of the largest Internet platforms in China, with about 300 million monthly unique visitors. The company’s system allows for the management of video, photos and games, whether on the desktop or for mobile devices.

From 2011 to 2013, revenues went from $87.5 million to $148.2 million. But last year, the company posted a net loss of $10.7 million. Xunlei expects to offer 7.3 million shares at a range of $9 to $11. The lead underwriters include J.P. Morgan and Citi.

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-gopro/.

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