What Alibaba’s Lock-up Expiration Means For BABA Stock

Mar 18, 2015, 11:45 am EDT
What Alibaba’s Lock-up Expiration Means For BABA Stock

Today is the lock-up expiration for Alibaba Group Holding Ltd (NYSE:BABA), which allows insiders to sell up to 337 million shares (another 100 million will be available after the company announces its earnings report in May).

So far in today’s trading, there appears to be little impact.  But on a longer-term basis, investors may want to be cautious.

But first, let’s get some background: A lock-up is a contract and is part of nearly every IPO. For the most part, it prevents insiders from selling stock within six months of the offering. The reason: this allows a company’s stock to have smoother trading. Read 

New Stocks to Watch: The Drought Continues

Mar 16, 2015, 11:27 am EDT
New Stocks to Watch: The Drought Continues

During the past month or so, the market for new stocks has hit a wall. Source: ©iStock.com/zigarrenschachtel

Some of the factors include increased volatility with equities, a pullback in energy deals because of the plunge in crude prices and lackluster returns from small biotech offerings. According to Renaissance Capital, the volume of IPOs for 2015 is 40% lower than 2014.

But there are some signs of life for new stocks. For example, last week Summit Materials Inc (NYSE:SUM) posted a 17% on its first day of trading. The company is a top provider of aggregates, concrete and asphalt paving services. Read 

LOCO Stock: El Pollo Loco Goes Crazy on Strong Earnings

Mar 13, 2015, 12:38 pm EDT
LOCO Stock: El Pollo Loco Goes Crazy on Strong Earnings

El Pollo Loco Holdings Inc (NASDAQ:LOCO), which operates a Tex-Mex chain of restaurants, has seen a steady decline from its IPO in July. But the company got a nice boost today. On news of the El Pollo Loco earnings report, LOCO stock is up about 12% to $27 in early trading.

In the fourth quarter, revenues came to $90 million, up 18%, and adjusted net income spiked by 60.6% to $5.5 million, or 14 cents per share. The Street was looking for revenues of $87.5 million and earnings of 12 cents per share.

Given this strong performance, it should be no surprise that El Pollo Loco posted robust comparable sales of 7.6% for the fourth quarter. Consider that the company has generated positive numbers for the past 14 consecutive quarters. Read 

BOX Stock Stumbling Out of the Gate

Mar 12, 2015, 11:41 am EDT
BOX Stock Stumbling Out of the Gate

Welcome to the public markets, Box Inc (NYSE:BOX). It can definitely be brutal.

Box Inc, which operates a cloud-based collaboration and storage platform, pulled off its IPO in late January and the stock surged a tidy 66% on its first day of trading. But since then, the performance has been pretty awful.

As of now, BOX stock is down about 30% from its high. Read 

What to Expect From the Etsy IPO

Mar 5, 2015, 11:02 am EDT
What to Expect From the Etsy IPO

As widely expected, Etsy, Inc. has filed for an IPO. The company, which operates an e-commerce marketplace to sell handmade crafts, plans to list on the Nasdaq under the ticker of ETSY.

The lead underwriters on the deal include Goldman Sachs Group Inc (NYSE:GS) and Morgan Stanley (NYSE:MS).

Unlike many S-1’s, which tend to be dry and boring (hey, they are often drafted by many attorneys!), the one from Etsy is definitely written with lots of flourish. Here’s just a sample: Read 

Alibaba Struggling With Tarnished Reputation (BABA)

Mar 5, 2015, 6:15 am EDT
Alibaba Struggling With Tarnished Reputation (BABA)

Last September, Chinese ecommerce giant Alibaba Group Holding Ltd (NYSE:BABA) pulled off history’s largest IPO, raising about $25 billion. But life as a public company has not been smooth.

BABA stock is off about 32% from its high, as a variety of top hedge funds — like Eton Park Capital Management LP, and Omega Advisors and Appaloosa Management — have unloaded their positions.

And while we’d all like to believe that the market is overreacting, giving investors a chance to grab BABA stock for cheap, there are a few lingering concerns that might keep investors away from Alibaba. Read 

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