11 New Stocks to Watch – TerraForm Brings the Dividends

Because of the 4th of July holiday, there were no IPOs last week. Yet this did not stop the momentum. For the upcoming week, there are 11 new stocks on deck.

The new stocks span a diverse set of industries like the cloud, biotech and energy. But with the market setting new highs and some analysts beginning to urge caution, will there be enough enthusiasm to propel these deals higher? We won’t know until the end of the week.

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

New Stocks to Watch: Medical Transcription Billing (MTBC)

Expected Offering Date: Friday

Medical Transcription Billing operates a cloud platform to help manage small and medium sized healthcare practices, such as with practice management tools, billing, electronic health records and mobile apps. A key part of the strategy is a low-cost engineering team, which includes more than 1,000 people in Pakistan.

In 2013, revenues came to $10 million but there was a net loss $178,000. There are currently about 400 customers.

The company plans to sell 3 million shares at a range of $9.00 to $11.00. The lead underwriters include Chardan Capital Markets, Aegis Capital Corp. and Summer Street Research Partners.

New Stocks to Watch: Microlin Bio (MCLB)

Expected Offering Date: Friday

Microlin Bio is a biotech company that focuses on microRNA and targets oncology therapeutics. Microlin is fairly new, having been incorporated in July 2013. But to get things moving quickly, the company licensed a portfolio of 138 pending patents and 132 granted patents from the Ohio State Innovation Foundation.

MicroRNA allows the human body to regulate gene expression and biological pathways. But when they are not balanced, they may lead to the emergence of diseases.

Microlin Bio plans to offer 5.5 million shares at a range of $4.50 to $5.50. The lead underwriters include Brean Capital and Summer Street Research Partners.

New Stocks to Watch: TerraForm Power (TERP)

Expected Offering Date: Friday

TerraForm Power purchased solar power generation assets from SunEdison (SUNE). The portfolio includes capacity of up to 807.7 MW, with footprints in the US, Canada, the UK and Chile. The contracts in place have an average term of 20 years. And with the IPO, TerraForm plans to continue its acquisitions.

For the most part, TerraForm is a dividend play. On an annual basis, the payout is projected at $0.9028 per share.

TerraForm Power expects to offer 20.1 million shares at a price range of $19to $21. The lead underwriters include Goldman Sachs (GS), Barclays (BCS), Citi (C), JP Morgan (JPM) and Macquarie Capital.

New Stocks to Watch: Trupanion (TRUP)

Expected Offering Date: Friday

Through a subscription service, Trupanion provides medical insurance for cats and dogs (in the U.S., Canada and Puerto Rico). For the past decade, pet enrollment has increased every quarter — with the total now at 181,634. The monthly retention rate is 98.5%.

From 2010 to 2013, revenues jumped from $19.1 million to $83.8 million. But the company has continued to lose money. Last year, the net loss was $8.2 million.

Trupanion expects to sell 7.1 million shares at a range of $13 to $15. The lead underwriters include RBC Capital Markets, Barclays and Stifel.

New Stocks to Watch: Globant (GLOB)

Expected Offering Date: Friday

Based in Argentina, Globant provides comprehensive information technology services, such as software development and integration. Some of the clients include Google (GOOG), LinkedIn (LNKD) and Disney (DIS).

From 2011 to 2013, revenues increased from $90.1 million to $158.3 million. There was also a profit last year, which came to $13.8 million.

Globant plans to issue 6.3 million shares at a range of $11 to $13. The lead underwriters include JP Morgan, Citi and Credit Suisse (CS).

New Stocks to Watch: TubeMogul (TUBE)

Expected Offering Date: Friday

TubeMogul operates a cloud-based platform that helps companies monetize their video assets. This involves using programmatic advertising, which is highly automated (in terms of targeting and bidding).

Growth has been strong. From 2011 to 2013, revenues soared from $15.7 million to $57.2 million. And while the company has been losing money, the losses have been declining. Last year, the net loss was only $1.9 million.

TubeMogul plans to sell 6.3 million shares at a range of $11 to $13. The lead underwriters include Bank of America (BAC), Citi and RBC Capital Markets.

New Stocks to Watch: Roka Bioscience (ROKA)

Expected Offering Date: Thursday

Roka Bioscience develops molecular diagnostics for detecting foodborne pathogens, a market that is estimated at $2 billion.

However, Roka is still in the early stages. So far, there are only 36 Atlas instrument installations. But the company thinks its technology, which relies on molecular-based arrays, is more accurate and cost-effective than the alternatives on the market. As for the first quarter, the company posted revenues of $828,000 and a net loss of $8.4 million.

Roka expects to sell 5 million shares at a range of $14 to $16. The lead underwriters include Bank of America, Leerink Partners, Cowen & Company and Wedbush PacGrow.

New Stocks to Watch: Pfenex (PFNX)

Expected Offering Date: Friday

Pfenex  is a clinical-stage biotechnology company that develops high-value proteins, with an initial focus on biosimilar therapeutics. That is, the drugs help with such problems as age-related macular degeneration. The lead candidate, PF582, is in Phase 1b/2a trials.

The company thinks the market is massive: About $4.3 billion on a global basis. The dominant players include F. Hoffmann-La Roche and Novartis (NVS).

Pfenex expects to sell 5 million shares at a range of $14 to $16. The lead underwriters include Morgan Stanley, Cowen & Company and RBC Capital Markets.

New Stocks to Watch: Sage Therapeutics (SAGE)

Expected Offering Date: Friday

Sage Therapeutics is focused on medicines that treat life-threatening, rare central nervous system, or CNS, disorders — where there are generally inadequate or no existing therapies.

The initial candidates are for targeting the different stages of status epilepticus, or SE. This is when the brain is in a state of persistent seizure. There are about 150,000 cases of this in the U.S. each year, costing 30,000 lives.

Sage intends on issuing 4 million shares at a range of $14 to $16. The lead underwriters include JP Morgan and Goldman Sachs.

New Stocks to Watch: CareDx (CDNA)

CareDx develops diagnostic surveillance solutions for heart transplant recipients. The technology essentially helps clinicians make personalized treatment decisions throughout a patient’s lifetime. The result is a lower need for invasive surveillance biopsies, which can be costly.

Last year, revenues came to about $5 million and the net loss was $1.3 million. In all, there are 285,000 organ transplant recipient living in the U.S. and the same number in Europe.

CareDx plans to offer 3.1 million shares at a range of $15 to $17. The lead underwriters include Piper Jaffray and Leerink Partners.

New Stocks to Watch: Iradimed (IRMD)

Expected Offering Date: Friday

Iradimed is a provider of non-magnetic intravenous (“IV”) infusion pump systems, which are can be used during magnetic resonance imaging (“MRI”) procedures. This is important for critically-ill patients who cannot be removed from medications.

In 2013, the company posted revenues of $11.3 million and an operating profit of $2.8 million. There are currently 1,917 infusion pump devices installed.

Iradimed expects to sell 1.75 million shares at a range of $5 to $6. The lead underwriter is Roth Capital.

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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