Jul 10, 2014, 1:23 pm EDT
Potbelly (PBPB), an operator of sandwich shops, pulled off a huge IPO back in October, with the stock soaring 120% to $34 on its first day of trading. But since then, life as a public company has been downright miserable. Just look at today’s chart, in which PBPB stock falls off a cliff. As of now, the price is hovering just above $11.
What’s going on here? Well, the growth rate is slowing down.
Just look at the latest announcement from the company, which provided a warning for fiscal second-quarter earnings. PBPB expects to post a meager 6.9% increase in sales to $83.6 million, which compares to the Wall Street estimate of $87 million. Read
Jul 10, 2014, 6:00 am EDT
When investors think of big gains from newly minted stocks, they tend to focus on the technology sector. That’s been true as some recent big tech IPOs — like GoPro (GPRO) have surged since hitting the ticker tape this year. Tech has certainly been the reigning IPO king.
At least until fracking came to town.
As the U.S. has undergone its energy renaissance, the appetite for new energy stocks has been great. How great, exactly? There were seven new energy stocks that went public during the second quarter alone. Perhaps more importantly, data from Dealogic shows that those IPOs in the energy sector saw an average first weekly gain of nearly 19%. Read