This year has seen the busiest U.S. IPO market since 2007, with 199 companies already going public.
Their performance has investors fearing we've hit IPO market bubble territory.
Of the year's 199 IPOs, 23% priced above their initial IPO ranges.
Through the first two weeks of November, 16 companies have doubled their initial public offering price. Six companies doubled their IPO price on the first day of trading alone.To continue reading, please click here...
IPOs This Week: More Than Twitter Hit the Market
In fact, 16 IPOs priced this week, for a total value of $4 billion.
While social media companies like Twitter are popular offerings now, other sectors dominating the IPO market include biotech, cloud computing, and cybersecurity.
So to look past Twitter, here are some of the week's biggest IPOs and how the stocks have fared thus far.To continue reading click here...
The Biggest Tech IPOs to Hit the Market
Thursday, micro-blogging site Twitter (NYSE: TWTR) will debut as a publicly traded company on Wall Street's Big Board. Many analysts - including those at Money Morning - will steer clear of the hotly anticipated IPO - but TWTR has had no trouble generating investor interest.
The San Francisco-based company even increased its price range Monday on roughly 70 million shares from $17 to $20 per share to $23 to $25. The move values the company at a whopping $13.9 billion, or 26 times its revenue over the last 12 months. Twitter hopes to raise as much as $1.75 billion.To continue reading, please click here...
The 10 Best IPOS of 2013
It's been an excellent year for the initial public offerings (IPO) market, with the number of companies going public more than 47% ahead of last year's pace.
The surge in IPO activity has already assured that 2013 will be the best year for new issues since 2007, just before the financial crisis pummeled the markets. That year had 213 IPOs; so far in 2013 there have been 168 IPOs, according to Renaissance Capital.Here are the top 10 market-beaters of 2013...
IPO Investing: Put These Market Debuts on Your Calendar
It's been a busy year for initial public offering (IPO) investing, and despite recent volatility, it's looking to be a busy fall for the new issues market...
The stock market has remained firm in spite of increasing tensions in the Middle East and the fear of quantitative easing (QE) tapering from the U.S. Federal Reserve.
IPO Market 2013: What's Next After the White-Hot Start
The IPO market has had a strong first half in 2013, in some cases delivering double-digit gains for those who have ventured into IPO investing.
As the stock market has staged an impressive rally, investor demand to get into the IPO market is returning to pre- credit-crisis levels. The second quarter was actually the most active three-month period for IPOs in six years.
So far in 2013, we have seen 92 deals. The average gain for initial buyers is around 20%.
The pace seems to be picking up, as the first quarter saw 31 deals raise about $7.6 billion, and the second quarter had 61 offerings raise more than $13 billion.
Financial firms, including real estate investment trusts (REITs), have been the most active industry, with 35 offerings. Healthcare companies are right behind, closing in on 34 deals so far this year.
Some analysts think we could see more than 200 deals by the end of the year.
That means more opportunity for IPO investing for double-digit gains...here's where to look.
The IPO Market Is Back Big-Time
As we move deeper into the second half of the year, we're seeing a robust IPO market that has been able to shake off 2012's Facebook IPO shame.
So far this year there have been 116 debut offerings, the strongest pace since 2007.
As Money Morning Executive Editor Bill Patalon explained earlier this week in his Private Briefing investment service column, the IPO market in 2013 is "white hot."
From Bill's analysis: The market has locked and loaded on about $4 billion in U.S. IPOs so far this year, Bloomberg News reports. At that pace, companies "going public" would raise the most this year since at least 1999, the financial news service says.
Real Estate Offerings Hot in the 2013 IPO Market
One of the highlights of the 2013 IPO market so far has been the flood of real estate related offerings.
We have seen a number of real estate investment trusts and homebuilders roll out initial offerings, and more are on the calendar.
They are seeing demand for investment products to fuel investors' desire for yield and ways to bet on a continued housing market recovery. More real estate related offerings are being added to the calendar on a regular basis and most have held up fairly well in the aftermarket.
Good news for investors looking on the IPO market: In the next week we have two real-estate related initial offerings that are worth consideration.
Here's a look.
Don't Let the Active IPO Market Fool You
Although last week was the most active for the initial public offering (IPO) market since 2010, don't expect it to be the start of a sustained wave of IPOs and a rally among volatile U.S. stocks.
Encouraged by Groupon Inc.'s (NYSE: GRPN) successful IPO Nov. 5 as well as the October rebound in the stock markets, eight stocks went public last week. They include such well-known names as Angie's List Inc. (Nasdaq: ANGI) and Delphi Automotive PLC (NYSE: DLPH).
With so many companies in the pipeline to go public - 179, according to Dealogic - it didn't take much to incite a stampede to market.
"When underwriters see a window like this, whether really open or not, they just stuff the IPO channel," Scott Sweet of research firm IPO Boutique told Reuters.
Companies also know that they only have a few weeks before the end of the year to launch an IPO, with the market essentially dormant from mid-December to mid-January. And by then, conditions could again turn too negative for comfort.
Many companies no doubt are tired of waiting on the sidelines. While the IPO market was thriving early in the year - 44 companies went public in the second quarter - activity slowed dramatically in the second half of the year. Companies were dissuaded by the raft of bad news over the summer, from the debt ceiling crisis and worries of a double dip recession in the United States to concern over the possibility that Greece would default on its sovereign debt.
After an especially volatile August, not a single IPO launched in September. That kept the number of companies going public in the third quarter to just 18, and even with last week's burst the current quarter's total stands at just 16.
Some think the sudden surge in the IPO market may signal a turnaround for stocks in general, or at least for IPOs, but many of the summer's concerns continue to hang over the markets.
"It's too early to tell which position we're in," said Money Morning Capital Waves Strategist Shah Gilani. "We could be at the starting gate for a stronger, more robust market ahead, which would be good for IPOs. Or, we just as easily could be seeing a grab for cash before the market hits the fan."
What the launch of so many IPOs in the same week gives investors is a few clues about the health of the markets - and a look under the surface shows all is not well.
Gauging the IPO MarketEven though last week saw a flurry of IPO activity, some companies are still holding off.
Bluestem Bands and WhiteSmoke are just two that had intended to go public last week or this week and instead postponed their offerings.
Also, five of last week's eight IPOs priced significantly at the low end, or below, their expected range. Of the eight that did launch, half fell on their debuts and one, Manning & Napier Inc. (NYSE: MN), was flat.
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