New Stocks to Watch: These IPOs May Not Be So Healthy

Even though the overall markets were robust last week, the optimism did not spread to IPOs. While 10 new stocks were on the calendar, only three could their deals done — and all of them were healthcare operators.

Now four of the postponed deals will attempt to come public this week. They include Carbylan Therapeutics, Inotek Pharmaceuticals, AltheaDx and Infraredx (I covered these last week in a post for the IPOPlaybook).

The problem? Well, there are four other healthcare offerings on the calendar. In other words, this week could again prove fairly difficult.

So let’s take a look at each of the new stocks:

New Stocks to Watch: AutoGenomics, Inc. (AGMX)

Expected Offering Date: Wednesday

AutoGenomics, Inc. is a diagnostics company that provides offerings such as genetic test panels, microarrays and reagent modules. They are fairly easy to use, require little manual intervention and have high levels of accuracy.

For the first nine months of 2014, the company posted revenues of $18.7 million and a net loss of $965,000. But the market opportunity is large. According to a report from Frost & Sullivan, it is about $6.2 billion in the U.S. and growing over 11% per year.

AutoGenomics plans to sell 3.8 million shares at a range of $11 to $13. The lead underwriters include Stifel Financial Corp (NYSE:SF),Canaccord Genuity Inc. and Cantor Fitzgerald.

New Stocks to Watch: Avenue Financial Holdings, Inc. (AVNU)

Expected Offering Date: Wednesday

Avenue Financial Holdings, Inc. is a bank whose operations are concentrated in the Nashville, Tennessee, area, with five branches. And growth has been strong. From 2012 to 2014, the compound annual growth rate for loans was about 20%.

Last year, net income came to $5.4 million, up from $3.8 million in 2013.

Avenue Financial Holdings expects to offer 2.5 million shares at a range of $11 to $13. The lead underwriter is Keefe, Bruyette & Woods.

New Stocks to Watch: Sol-Wind Renewable Power LP (SLWD)

Expected Offering Date: Wednesday

Sol-Wind Renewable Power LP is a limited partnership that is focused on operating solar and wind power generation assets. The company uses long-term purchase agreements with commercial customers — such as utilities and municipalities — to generate generally stable cash flows and attractive dividend payouts (the cash distribution for 2015 is expected to be $1.30 per share).

The company believes it is positioned to benefit from some major trends. They include the need for construction to replace aging infrastructure, overall healthy demand for renewable energy because of U.S. regulations and improvements in solar/wind technologies.

Sol-Wind Renewable Power expects to sell 8.7 million units at a range of $19 to $21. The lead underwriters include UBS Group AG (NYSE:UBS), Citigroup Inc (NYSE:C), Wells Fargo & Co (NYSE:WFC), Credit Suisse Group AG (NYSE:CS), Deutsche Bank AG (NYSE:DB) and Macquarie Capital.

New Stocks to Watch: Inovalon Holdings Inc (INOV)

Expected Offering Date: Thursday

Inovalon uses cloud computing and Big Data to provide insights to healthcare providers so as to improve clinical outcomes, utilization and efficiencies. Last year, the company offered its services to more than 100 clients.

For the first nine months of 2014, revenues jumped 17% to $271.6 million and adjusted earnings before interest, taxes, depreciation, and amortization came to $103.1 million. In fact, the company thinks its market opportunity is a massive $10.6 billion.

Inovalon Holdings plans to sell 22.2 million shares at a range of $21 to $24. The lead underwriters include Goldman Sachs Group Inc (NYSE:GS), Morgan Stanley (NYSE:MS), Citigroup, Bank of America Corp (NYSE:BAC) and UBS.

New Stocks to Watch: Invitae (NVTA)

Expected Offering Date: Thursday

Invitae develops genetic testing systems that cost $1,500 per sample. They provide an assay of 216 genes comprising 85 different genetic disorders and 17 targeted panels. The turnaround time is usually less than three weeks.

Although, the company is still in the early stages. For the first nine months of 2014, revenues came to $729,000 and the net loss was $32.2 million.

Invitae plans to sell 5.4 million shares at a range of $13 to $15. The lead underwriter is J.P. Morgan Chase & Co (NYSE:JPM).

New Stocks to Watch: Bellerophon Therapeutics (BLPH)

Expected Offering Date: Friday

Bellerophon Therapeutics is a clinical-stage biotech company that is focused on creating treatments for cardiopulmonary and cardiac diseases.

The company’s two lead candidates include one for pulmonary arterial hypertension, which will began Phase 3 trials in the second half of 2015, and the other is for pulmonary hypertension associated with chronic obstructive pulmonary disease. This treatment is currently in Phase 2 trials.

Bellerophon Therapeutics expects to offer 4 million shares at a range of $14 to $16. The lead underwriters include Leerink Partners and Cowen & Company.

New Stocks to Watch: Great Ajax Corp (AJX)

Expected Offering Date: Friday

Great Ajax Corp is a real estate investment trust (REIT) that focuses on acquiring re-performing and non-performing mortgage loans secured by single-family residences as well as multi-family and commercial mixed-use properties. To do this, the firm relies on sophisticated analytics on unemployment rates, household incomes, housing starts, crime rates, education and electoral participation.

Great Ajax was formed in January 2014 and commenced operations in July. So far, the portfolio consists of 1,340 loans and the total market value is about $304.5 million.

As for the IPO, Great Ajax plans to issue 5.8 million shares at a range of $15 to $17. The lead underwriters include FBR Capital Markets, Sterne Agee and Nomura Securities.

Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO StrategiesAll About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.

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