So far this year, only eight new stocks have hit the public markets … and the overall performance has been lackluster. Five of the new stocks are either in negative territory or have posted just single-digit returns.
The follow-up question is obvious: Is this is a sign of trouble ahead? Unfortunately, it could be — especially if the equities markets remain volatile.
Despite this, Wall Street is still pushing ahead with dealmaking. As for the current week, we have another eight new stocks to watch.
Take a look:
New Stocks to Watch – Cara Therapeutics (NASDAQ:CARA)
If you’re a fan of biotech stocks, the first company on our list of new stocks to watch might just be for you. Cara Therapeutics is a clinical-stage biotech operator focused on chemical entities that alleviate pain by selectively targeting kappa opioid receptors.
The lead drug for Cara Therapeutics is CR845 and is in Phase 2 trials. Phase 3 trials will begin in the second half of this year. According to data from IMS Health, the U.S. market for pain management pharmaceuticals was $18.2 billion in 2012.
CARA plans to issue 5 million shares at a range of $11 to $13. The lead underwriters for the Cara Therapeutics IPO include Stifel and Piper Jaffray.
New Stocks to Watch – Continental Building Products (NYSE:CBPX)
Other new stocks to watch include Continental Building Products, a top manufacturer of high-margin gypsum wallboard and complementary finishing products. For the most part, the business is focused on the eastern U.S. and eastern Canada. Some of the brands include LiftLite, Mold Defense and Weather Defense.
During the first nine months of last year, Continental Building Products revenue hit $287.9 million, up from $223.4 million the year prior. For this period, adjusted EBITDA also jumped from $26.5 million to $72.7 million.
CBPX intends to issue 13.2 million shares at a range of $16 to $18. The lead underwriters for the Continental Building Properties IPO include Citi (CS), Credit Suisse (CS), Barclays (BCS), Deutsche Bank (DB) and RBC Capital Markets.
New Stocks to Watch – Dicerna Pharmaceuticals (NASDAQ:DRNA)
Next up, we have another biotech pick in our list of new stocks to watch. Dicerna Pharmaceuticals is developing treatments for rare inherited diseases involving the liver and for cancers that are genetically defined. The main approach is to use a proprietary RNA interference platform, which should streamline the process of development
For the most part, Dicerna Pharmaceuticals plans to leverage partnerships. So far, it has forged a relationship with Kyowa Hakko Kirin, a major pharma company.
DRNA intends to issue 5 million shares at a range of $11 to $13. The lead underwriters for the Dicerna Pharmaceuticals IPO include Jefferies, Leerink Partners and Stifel.
New Stocks to Watch – Intrawest Resort Holdings (NYSE:SNOW)
Intrawest Resort Holdings has ownership interests in seven mountain resorts, with properties like Winter Park, Steamboat and Snowshoe Mountain … which tally more than 11,000 skiable acres. SNOW attracts over 6 million visitors per year, and also has over 1,150 acres of land available for real estate development.
Like other new stocks to watch, Intrawest Resort Holdings has shown solid growth. From fiscal 2012 to 2013, revenues increased from $481.7 million to $517.4 million and adjusted EBITDA increased from $92 million to $105.3.
As for the IPO, SNOW plans to sell 15.6 million shares at a range of $15 to $17. Lead underwriters for the Intrawest Resort IPO include Goldman Sachs (GS), Credit Suisse, Deutsche Bank and BofA Merrill Lynch (BAC).
New Stocks to Watch – Malibu Boats (NASDAQ:MBUU)
The next name on our list of new stocks to watch is Malibu Boats … and as the name suggests, it designs and manufactures performance sports boats. In fact, it’s had the No. 1 market share position in the U.S. since 2010, and price points range from $40,000 to $120,000. But a key to success has been a focus on innovation. In fact, during the past three years, Malibu Boats has won the Watersports Industry Association’s Innovation of the Year award.
Plus, growth for Malibu Boats has been robust. From 2011 to 2013, revenues increased from $99.9 million to $167 million while the adjusted EBITDA went from $7.9 million to $31.8 million.
MBUU plans to sell 7.1 million shares at a range of $13 to $15. Lead underwriters for the Malibu Boats IPO include Raymond James and Wells Fargo Securities (WFC).
New Stocks to Watch – North Atlantic Drilling (NYSE:NADL)
North Atlantic Drilling, which is a division of Seadrill (SDRL), focuses on new offshore drilling in the North Atlantic region. The company has long-term contracts with biggies like Statoil, ConocoPhillips (COP), Shell (RDS-A), Total (TOT) and Exxon Mobil (XOM).
For the first nine months of 2013, North Atlantic Drilling posted revenues of $1 billion, up from $761.5 million in the same period in 2012. During this period, net income also edged up from $186.9 million to $187.5.
NADL plans to issue 13.5 million shares at a range of $8.50 to $10.00. The lead underwriters for the North Atlantic Drilling IPO include Morgan Stanley (MS), Barclays, Goldman Sachs, and RS Platou.
New Stocks to Watch – The New Home Company (NYSE:NWHM)
Next for new stocks to watch is a homebuilder, The New Home Company, which targets markets in southern California, the San Francisco Bay area and metro Sacramento. The founders of the company include veterans of the real estate business, such as Larry Webb and Wayne Stelmar. Both helped build John Laing Homes into a major player.
The New Home Company is an early stage company, having gotten its start in 2009. But as of the first nine months of last year, revenues reached $24.7 million and net income came to $1.3 million.
With the IPO, NWHM plans to issue 7.8 million shares at a range of $15 to $17. The lead underwriters for The New Home Company IPO include Citi, J.P. Morgan (JPM) and Credit Suisse.
New Stocks to Watch – Ultragenyx Pharmaceutical (NASDAQ:RARE)
Last on our list of new stocks to watch is Ultragenyx Pharmaceutical, a clinical-stage biotech operator that focuses on the treatment of rare and ultra-rare diseases. A few examples: X-linked hypophosphatemia (which can cause skeletal deformities), Sly Syndrome (a severe cellular dysfunction that often leads to death for teens and those in early adulthood) and long-chain fatty acid oxidation (a deficiency that reduces the ability to create energy from fat, which can lead to the depletion of glucose in the body).
The founder and CEO of Ultragenyx Pharmaceutical is Dr. Emil Kakkis — the former Chief Medical Officer of BioMarin Pharmaceutical (BMRN).
RARE intends to issue 4.8 million shares at a range of $14 to $17. Lead underwriters for the Ultragenyx Pharmaceutical IPO include J.P. Morgan and Morgan Stanley.
Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO Strategies, All 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.