Take Comfort in Mattress Firm’s Prospects

Nov 18, 2011, 11:51 am EST
Take Comfort in Mattress Firm’s Prospects

The Mattress Firm (NASDAQ:MFRM) IPO might not be as sexy a company as Pandora (NYSE:P) or LinkedIn (NYSE:LNKD), but it still has been able to capture the attention of IPO investors. The company priced its offering at the top of its $17-$19 range, and MFRM stock finished up 16% in Friday trading. Underwriters included Barclays and UBS.

Founded in 1986, Mattress Firm has become a top specialty retailer of mattresses, boasting 757 stores across 25 states, with a typical location size of 4,300 square feet. However, the company also has been rolling out Supercenter storefronts, which have roughly 6,300 square feet of space.

Mattress Firm has a unique in-store experience called “Comfort by Color.” That is beds’ comfort levels are actually sorted by a color system — for instance, red for “pillow top mattress” and yellow for “firm.” The system makes it easier to find a specific comfort level and continue shopping by style and price point. Read 

Raed Malhas Talks Angie’s List, Groupon

Nov 18, 2011, 10:42 am EST

Raed Malhas founded MiNeeds.com in late 2007 and launched the website in the summer of 2008. With the site, he created a platform that allows consumers to post jobs they need to get done — and contractors then bid for the work.

So with the recent IPOs of Angie’s List (NASDAQ:ANGI) — which provides reviews for local service providers — and daily deals website Groupon (NASDAQ:GRPN), I thought it would be interesting to get his views on these companies, as well as the industry trends. Here’s a few things Malhas had to say: Angie’s List

“Angies List has an interesting model today because they are still able to convince consumers to pay to read reviews of local professionals even when there are a plethora of free websites. My gut says that the major increase in marketing spend in 2011 is driven by their knowledge that the model has a short life. Read 

Yelp Pushes Forward on IPO

Nov 18, 2011, 7:00 am EST
Yelp Pushes Forward on IPO

As we’ve recently seen with Groupon (NASDAQ:GRPN) and Angie’s List (NASDAQ:ANGI), investors definitely have an appetite for tech IPOs — even with those companies continuing to post losses.

It should be no surprise that others are jumping into the fray. The latest is business-review website operator Yelp, which filed for an IPO late Thursday. Lead underwriters include Goldman Sachs and Citigroup.

Yelp is a platform for consumers to review and rate local business, such as restaurants, spas, salons, plumbers and so on. It’s a popular site, with roughly 61 million unique visitors every month. And its mobile apps bring in more than 5 million unique visitors. Read 

Investors Take to Angie’s List

Nov 17, 2011, 1:43 pm EST
Investors Take to Angie’s List

It looks like the successful IPO of Groupon (Nasdaq:GRPN) may not have been an aberration.  Another company focused on the local business market, Angie’s List (NASDAQ:ANGI) also was able to pull off an impressive offering.

The company priced its deal at $13 a share, which was at the top of the $11-$13 range.  The stock is up 30% in Thursday’s trading.

Unlike many Web 2.0 plays, Angie’s List actually charges its site members.  For this, they get access to curated reviews and ratings of contractors.  In all, there are more than 1 million paying members, however the company still generates a substantial amount of revenue from business owners who advertise on the site. Read 

Recent Chinese IPOs Turning Sour

Nov 17, 2011, 11:29 am EST

A year ago, Youku.com (NASDAQ:YOKU) went public, surging a whopping 161% on its first day of trading.  At the time, the company was considered to be the “YouTube of China,” so what could go wrong?

As we’ve seen, a lot can happen in the tech world, especially when it comes to Chinese operators.  Since Yoku’s IPO, the stock has fallen a gruesome 40.8%.

Unfortunately, investors got even more bad news on Thursday.  The stock plunged nearly 20% because of its third-quarter report. Read 

InvenSense IPO Gets Some Early Movement

Nov 17, 2011, 11:06 am EST

InvenSense (NYSE:INVN), which develops motion-processing semiconductors, posted a strong gain on its IPO on Wednesday, with the stock moving up 18.6% — that booming number came despite the markets’ nearly 2% plunge late in the day.

But the path to the IPO was far from easy. Back in August, InvenSense had to postpone its deal because of market volatility. Even when things turned around in October and early this month, the company still had to discount the offering. Initially, InvenSense set the terms at 10.5 million shares at a range of $8.50-$10.50. Then the company lowered it to 10 million shares at a range of $7-$8.50. In the end, InvenSense priced the transaction at $8.50.

Despite this turbulence, InvenSense still is a solid company, evidenced by its ability to attract Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS) as underwriters. Read 

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