Aug 7, 2014, 11:54 am EDT
During the past few weeks, much of the gains for 2014 have evaporated. Both the S&P 500 and the Dow Jones Industrial Average are down more than 3% since July 25. And while the S&P is still showing a gain for the year so far, the Dow is now in the red for 2014.
As should be no surprise, the biggest impact has been on smaller stocks, which tend to be riskier. Naturally, many IPOs have taken hits, too. But a pullback in a stock often leads to one question: Should investors just stay away, or are they looking at a good buying opportunity thanks to lower prices?
For some of these new stocks, I think we’re seeing the latter. The fact is that there are plenty of innovative companies that are attacking huge market opportunities. In other words, this should be a good time for long-term investors. Read
Aug 4, 2014, 10:48 am EDT
Last week was the most active week for IPOs since 2007, with 15 offerings hitting the market (according to Renaissance Capital). Yet the overall performance was mixed. While some IPOs had standout performances — like Mobileye (MBLY) and HealthEquity (HQY) — there were also plenty of duds, especially with small biotech deals.
As for the this week, the activity will remain healthy as 10 deals are planned to come to market. Of these, four are holdovers from last week, which include Auris Medical (EARS), Tobira Therapeutics (TBRA),
Microlin Bio (MCLB) and Zosano Pharma (ZSAN).
So let’s take a look: Read
Jul 30, 2014, 10:49 am EDT
Last week I was at a conference on Sand Hill Road, which is in Menlo Park, Calif. The highway is nothing special, kind of rustic looking. But Sand Hill Road is the nerve center of venture capital in Silicon Valley. Some of the firms located there include Andreessen Horowitz, Sequoia Capital, Battery Ventures and Greylock Partners. It reminded me of the importance that venture capital firms have in the current business landscape.
To understand why venture capital is so important, let’s first take a brief look at its history. Interestingly enough, venture capital is a fairly young practice, with the roots going back to the early 1970s. At the time, several tech veterans like Tom Perkins and Don Valentine saw huge opportunities to provide funding for emerging startups. Read
Jul 29, 2014, 9:49 am EDT
Last week saw 10 IPOs hit the market with mixed results. While a handful did extremely well — such as El Pollo Loco (LOCO), which had a boffo first day — the overall performance was far from robust. In fact, seven companies had to price their IPOs below their proposed ranges.
But Wall Street isn’t slowing down — in fact, it’s adding more juice to the IPO machine. This week, we’ll see 22 new stocks hitting the market (including holdovers Atara Biotherapeutics, Mapi-Pharma and Spark Energy, which we talked about here).
Yet it seems like a good bet that the erosion will continue since plenty of the offerings are from small, experimental biotechs – which investors seem to be getting tired of. Read
Jul 25, 2014, 12:00 pm EDT
El Pollo Loco (LOCO), which operates a chain of more than 400 Tex-Mex fast food locations, made big news with a relatively small offering today.
The El Pollo Loco IPO shot out of the gate with 28% returns for LOCO stock after issuing 7.1 million shares at $15 each, pulled off a successful IPO today.
The company issued 7.1 million shares at $15 each — the high end of the projected $13-$15 range — and including overallotment, the El Pollo Loco is valued around $123 million. Read
Jul 21, 2014, 12:07 pm EDT
Last week, there were some red-hot IPOs. Just look at TubeMogul (TUBE), which was up 64% and Sage Therapeutics (SAGE), which spiked 67%.
Despite these success, there was actually underlying weakness in the IPO market. Many deals saw reductions in the pricing in order to gin up demand. Then again, there has been a flood of IPOs lately, which will continue this week, with 14 new stocks on deck. (Three of them are holdovers from last week: Medical Transcription Billing, Microlin Bio and Pfenex).
So let’s take a look at each: Read