Jul 2, 2014, 11:53 am EDT
King Digital Entertainment (KING), the developer of Candy Crush Saga and other popular mobile games, has had a tough time since its IPO in late March. The offer price was $22.50, which was at the midpoint of the range of $21 to $24, and quickly fell to $15.21. But over the past week, King stock has had a nice run, trading up around $21.
Might this the start of a bull trend? Or should investors still be cautious?
Keep in mind that a key to the move in King stock has been positive notes from various Wall Street analysts. Just look at JP Morgan’s (JPM) Dough Anmuth. According to his analysis, King stock could get a nice boost from the continued strength in free cash flow generation, which he thinks will exceed $800 million this year. He even thinks the company may return some of this cash to shareholders either via dividend or share buybacks. Anmuth has a price target on King stock of $30 by the end of the year. Read
Jul 1, 2014, 11:13 am EDT
This week, Twitter (TWTR) agreed to purchase TapCommerce, a top player in the mobile ad space. While no price tag was disclosed, the buzz is that the deal came to about $100 million. The acquisition also comes on the heels of a big run for Twitter stock, which is up about 25% since late May.
First, let’s get some background on TapCommerce: Founded in 2012, the company saw lots of potential with mobile ad retargeting. Granted, this type of technology has been around for quite some time, but it has traditionally been focused on the desktop.
Example: Suppose you visit an ecommerce site and check out some products but do not make any purchases. Then you visit other sites and see ads pop up for that same ecommerce site. These generally have a higher conversion rate because you have already indicated some level of interest in the products. Read
Jun 30, 2014, 2:15 pm EDT
Old Mutual Asset Management — a well-heeled, multi-boutique asset manager with $203.1 billion in AUM, has filed for an IPO. The firm is a division of Old Mutual, which is a London-based insurer established in 1845.
Old Mutual Asset Management’s roots go back to 1980, which certainly was an ideal time to start an asset management firm given that was the start of America’s massive bull market. To build scale, the firm pulled off a variety of acquisitions of boutique operators. Yet Old Mutual allowed them to remain fairly independent, which has helped to allow for better investment returns as well as continuity. (Average tenure for a manager is roughly 20 years.)
Old Mutual currently has seven boutiques, and each has access to the parent company’s core infrastructure, such as compliance, distribution channels, talent management and risk management. Read
Jun 30, 2014, 10:20 am EDT
CNBCs second annual Disruptor 50 list is out. A total of 50 private companies from 27 different industries get props for their forward-thinking businesses. No less than 15 financials occupy spots on this year’s list.
While all 15 financial companies have interesting business models, three in particular caught my attention as being companies with particular promise if they were ever to go public. In particular, each of these companies is disrupting the traditional financials business in interesting and promising ways.
Read on and I’ll explain what makes this trio of disruptive businesses so attractive as investments. When these three financials go public, you’ll want to be a part of their IPOs. Read
Jun 27, 2014, 11:59 am EDT
According to the latest Alibaba IPO filing, the company will list its offering on the NYSE — a part of the IntercontinentalExchange (ICE) — under the ticker BABA. While this is not necessarily a surprise, it is nonetheless another sign that the Nasdaq OMX Group (NDAQ) is losing its long-time dominance of tech deals.
If anything, the NASDAQ has deep innovative roots. Keep in mind that — when it was launched in the early 1970s — it was the world’s first electronic stock exchange. For the most part, it was a way to make it easier to trade in smaller stocks that could not meet the stringent requirements of the NYSE.
But this turned out to be a huge advantage, especially with the PC revolution in the 1980s. During this time, the NASDAQ benefited from the listings of breakout companies like Apple (AAPL), Microsoft (MSFT), Intel (INTC) and Oracle (ORCL). Read