If you've spent any time at all studying the stock market, you know that investing in IPOs can be a very high-risk enterprise. Sure, winners can double or triple your money in short order. But losers can cut your money in half - or worse - just as fast. If only you could capture most of those big gains without all that risk.
We haven't seen an IPO market this strong in six years. Of the 168 companies to go public this year, more than 70% are trading above their offer price. And the top IPOs this year have seen gains of 140%, 187%, even 369%.
The U.S. Federal Reserve was also in the spotlight, and Twitter took center stage once again as we learned of the micro-blogging site's target IPO date.
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.
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.
Each of the companies you'll see today is just a few weeks old. That's why you need to know about them right now.
You see, the market for all biotech shares is heating up.
IPO action is proof of the big bucks coming into biotech, igniting a strong rally in the entire sector for the rest of the year. So far this year we've seen the most biotech IPOs in 13 years.
And the gains are beginning to add up...
The best-performing stock in this space, as you're about to see, is up 130% in little more than a month. And three other brand-new firms are roaring.
But there's a better way to make money here...
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.
The 2013 IPO market has focused on some strong real-estate offerings. If you’re looking for the next hot issues, here are two to watch.
The IPO Calendar 2013 now has a homebuilder and two banks coming to market in May. Here’s why their timing could be perfect for investors. Read more...
So far IPO performance for 2013 has rewarded investors – and there’s more to come. Here are the year’s best and worst performers. Read more...
One of the most anticipated IPOs of 2013 is coming to market next week.
It's part of the handful of deals debuting next week, many of which include investment banks like Goldman Sachs, JPMorgan and BofA Merrill Lynch in lead roles.
The following few deals are expected to be high-demand offerings with solid aftermarket potential.
First, let's look at a couple of the small deals hitting the market next week. These are in addition to the three we profiled earlier in the week.
Three More for Your IPO Calendar
On Thursday, April 18, we will see an IPO from Taminco Corp. (NYSE: TAM), which produces alkylamines and alkylamine derivatives. These are used in the manufacturing of products for the agriculture, water treatment, personal & home care, animal nutrition and oil and gas end-markets. They help neutralize acidity, and remove contaminants from a wide range of products.
Taminco is the dominant player in a niche market with few competitors, giving it substantial pricing power, according to the prospectus. Most raw material price changes are easily passed on to the end consumer.
After a slow start to April, with just one deal scheduled for pricing, the IPO calendar is getting crowded again in the second week of the month. Stock prices should stay firm, and that means favorable conditions for IPOs. Here are five to keep on your radar.
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).
But analyst skepticism over Groupon's long-term prospects and lingering fears over the European debt crisis, as well as the tepid U.S. economy, mean that the dry spell for the IPO market will stretch on into next year.
Companies around the globe have raised more than $26 billion through initial public offerings (IPOs) this year, a 20% increase over last year and the best start on record, according to Dealogic. Globally, 15 IPOs were crammed into the first two weeks of February - a month that last year had seen a total of just four IPOs.
Not since 2007, when 17 companies listed, has the IPO market been so active. By comparison, just three companies listed in February 2009 and four in 2010.