Sep 14, 2011, 9:54 am EDT
It certainly has been a taxing time for companies like H&R Block (NYSE:HRB). During the past three years, the average annual return for the tax prep operator was a dismal 14.76%. What’s more, several rivals have gone bust, such as Jackson Hewitt (though the company recently has gotten approval for a reorganization plan).
But as the United States deals with its budget problems, it seems inevitable that taxes will increase and become more numerous. And despite all the talk of tax reform, the likelihood is laws will get even more complicated.
So it is in this environment that Liberty Tax has filed to go public. The company expects to raise about $90 million in the offering. Read
Sep 13, 2011, 10:35 am EDT
The IPO market can be extremely sensitive to volatility. This is the case even for high-profile offerings. For example, it appears that Zynga and Groupon have delayed their deals.
Despite all this, companies continue to file for public offerings. Take Restoration Hardware, a home furnishing retailer. The company plans to raise $150 million in an IPO, even though the economy remains dicey.
But then again, it can easily take six months to a year to launch an IPO — and much can happen during that long a period of time. What’s more, Restoration Hardware has snagged an impressive group of underwriters to pull off the transaction: Goldman Sachs and Bank of America Merrill Lynch. Read
Sep 9, 2011, 12:28 pm EDT
Living in Silicon Valley, I often get the sense that my reality is being warped. It really is hard to believe all the negative headlines when many companies are raising huge amounts of money — and growing at hyper-speed.
Is it a bubble? Perhaps so. Even high-profile IPOs like Pandora (NYSE:P) and LinkedIn (NYSE:LNKD) have seen drops in their stock prices.
But venture capitalists don’t seem to care. Their wallets are in overdrive. Read
Sep 8, 2011, 10:22 am EDT
Things have been dicey in IPO-land lately. Just this week, Groupon cancelled its roadshow because of the extreme volatility. Even the highly profitable Zynga is getting cautious.
But then there is Facebook. It really does not have to think about such mundane issues. If the company decided to go public this week, it would get a surge of demand — from the across the world.
After all, Facebook has more than 750 million active users and continues to grow like a weed. According to a report from Reuters, revenues in the first half of 2011 doubled to $1.6 billion as the company continues to take share away from rivals like Microsoft (NASDAQ:MSFT) and Yahoo (NASDAQ:YHOO). Read
Sep 7, 2011, 10:43 am EDT
The IPO market is usually pretty exciting. Hey, it’s a way for investors to get a chance at finding the next Google (NASDAQ:GOOG) or Starbucks (NASDAQ:SBUX).
But the market also can be risky. Remember Pets.com? What about Webvan? Unfortunately, there are hundreds of examples of implosions.
And we might be seeing another one — that is, the Groupon IPO. Not long ago, it was considered a New Age darling. But now, it seems the offering is falling into a black hole. Read
Aug 30, 2011, 10:33 am EDT
It has been about 10 years since the U.S. has had a robust IPO market. And yes, it seemed like there finally would be a boom in 2011. But unfortunately, the markets have suddenly gone into a tailspin.
Because of this, it might mean only top-notch IPOs, such as Zynga and Facebook, will get a good reception. After all, investors always will want to get exposure to hot growth plays, right?
Well, according to both The New York Post and CNBC, the upcoming Zynga deal might actually be pushed back as far as November — the expectation was for the deal to hit the markets in September. Read