Facebook, Google Aren’t Killing the Tech IPO Market

Apr 1, 2014, 8:18 am EDT
Facebook, Google Aren’t Killing the Tech IPO Market

Mega dealmaking is back in the tech world.

Facebook (FB) has been on a tear, making the biggest headlines with its $19 billion purchase of mobile messaging service WhatsApp, but after supposedly shutting down the M&A train, it came back with a $2 billion of Oculus VR, which works on virtual reality headsets.

Google (GOOG) has been no slouch either, plunking down $3.2 billion for Nest Labs, maker of a “smart” thermostat, and then $1 billion for traffic and navigation app Waze. Read 

8 New Stocks to Watch: GrubHub, IMS Health on Deck

Mar 31, 2014, 1:08 pm EDT
8 New Stocks to Watch: GrubHub, IMS Health on Deck

It finally happened. The IPO market finally took a couple shots.

After a rip-roaring 2014 for new stocks on the market, IPOs were less than warmly welcomed last week, as four of 11 deals finished breakeven or even negative. Another two boasted only single-digit returns in the black.

Of course, the worst performer was King Entertainment Media (KING), which lost about 20% of its value in a dreadful IPO. Even though the company has been growing at a breakneck pace — and is even profitable — Wall Street was worried that its Candy Crush Saga momentum is starting to wane. Read 

TWTR and 7 Other IPO Lockups to Worry About

Mar 28, 2014, 1:11 pm EDT
TWTR and 7 Other IPO Lockups to Worry About

Twitter (TWTR) has been in near-free fall since early February, with Twitter stock diving by nearly 30% in just a couple of months.

True, part of the hit can be chalked up to the impact of a bear move in the broader social sector — see Facebook (FB), Angie’s List (ANGI) and Pandora (P). But there’s another factor that TWTR stock investors should be worried about: the IPO lock-up expiration.

Lock-ups and their expirations — in which insiders are allowed to sell shares — are normal occurrences for all IPOs. Insiders typically are restricted from selling for up to six months following the offering. Read 

CBS Outdoor IPO: CBSO Gets Wall Street’s Attention

Mar 28, 2014, 12:18 pm EDT
CBS Outdoor IPO: CBSO Gets Wall Street’s Attention

CBS (CBS) has just launched the spinoff of its CBS Outdoor Americas (CBSO) division, which rents advertising space on highway billboards as well as in municipal transit systems. The particularly unsexy business still is seeing a decent showing today — it raised roughly $560 million, and CBS Outdoor’s stock is up about 8% in its debut.

CBS Outdoor is the result of aggressive M&A that began roughly 20 years ago. At first, the dealmaking mostly took place in the U.S., Canada and Mexico, but in 2008, CBSO expanded its footprint into Argentina, Brazil, Chile and Uruguay.

Now, CBS Outdoor is one of the biggest players on the field, boasting marquee locations include the Bay Bridge in San Francisco, Sunset Boulevard in Los Angeles and Grand Central Station and Times Square in New York City. In all, CBS Outdoor has a portfolio of 356,000 displays. Read 

3 Reasons KING Stock Is Nothing Like ZNGA

Mar 27, 2014, 3:23 pm EDT

PrivCo analyst Matthew Turlip considers King Digital Entertainment (KING) — maker of the uber-hot mobile game Candy Crush Saga — to be a “one-trick pony” much like Zynga (ZNGA).

Turlip sees a very rocky future, and so far, he’s right. On Tuesday, KING stock was priced at $22.50 for its IPO, and it’s noticeably down during its first two days of trading.

So, point to Turlip. Read 

Ally Financial IPO: Don’t Bank on a Blockbuster Offering

Mar 27, 2014, 2:23 pm EDT
Ally Financial IPO: Don’t Bank on a Blockbuster Offering

Ally Financial, a top auto finance company, has set the terms for its upcoming IPO, and the numbers are interesting — 95 million shares at a range of $25 to $28, which would mean a valuation of $13 billion at the midpoint.

But it’s hard to get excited for its prospects — there’s not much to differentiate Ally Financial from the industry’s many competitors.

A little background: The roots of Ally Financial go back to 1919 (right after World War I) when it was the finance arm for General Motors (GM). But by 2006, the automaker sold off a majority of the company, and of course, a few years later Ally got a $17.2 billion bailout loan from the federal government. Read 

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