4. Enphase Energy
YTD Return: -52%
Date of IPO: 03/29/12
Enphase Energy (NASDAQ:ENPH) develops so-called microinverter technology that helps solar companies increase energy production, improve design and allow for cost-effective installations. It is a breakthrough technology that is trying to replace the traditional approach, known as inverters. These have been around for about two decades.
Unfortunately, the solar industry has been horrible for investors in 2012. With government cutbacks in the U.S. and Europe, the industry is facing much slower growth.
Despite this dour environment, Enphase continues to post solid results. In the third quarter, the company announced revenues of $60.8 million, up 36% on a year-over-year basis.
But investors don’t seem to care. Enphase’s stock has seen a fairly steady, grinding loss of value since its IPO.
A long-time follower of the IPO scene, back in 1999 Tom started one of the first sites in the space called WebIPO. It was a place where investors got research as well as access to deals for the dot-com boom. Tom also wrote the top-selling book, Investing in IPOs. In it, he covers all the aspects of analyzing an IPO, such as reading the prospectus, detecting the risk factors and understanding some of the arcane regulations. But don’t worry — if that process is too intimidating for you, thankfully Tom will do the legwork for you right here in the IPO Playbook blog.
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