Wall Street Watch: Day 2 of the IPO Party Has Been Canceled
Underwriters priced the IPO at $17 a share, and the market ate it up. Shares of the real estate website operator opened 30% higher on Thursday morning, closing out the day 41% higher at $24.
Trulia has yet to turn a profit, making Thursday's big move more than a bit surprising. Sure, the dot-com is growing quickly. Revenue nearly doubled last year. However, the market is hungry enough for new offerings that it's willing to let Trulia's lack of positive earnings slide.
Except it's not going to happen. Late Thursday, Smith Electric canceled the IPO.
It's not because Smith Electric isn't profitable at the moment. Actually, it's not profitable yet, but the investors who were clamoring for a piece of the potentially promising electric vehicle market didn't seem to mind.
"We received significant interest from potential investors," said Bryan Hansel, Smith's chief executive officer. "However, we were unable to complete a transaction at a valuation or size that would be in the best interests of our company and its existing shareholders."
Smith Electric's client list is a who's who of consumer-facing companies that welcome the opportunity to replace their fleets of diesel-slurping vehicles with trucks powered by electricity. As long as the fleet operators have predictable daily routes of no more than 120 miles before returning to the depot, Smith Electric's trucks are surprisingly easy to sell.
For now, they'll keep selling the trucks -- but not stock.
Other Things Worth Watching
• Cintas (CTAS) suited up after Thursday's market close. The leading provider of corporate uniforms and other workplace essentials posted mixed quarterly results for its first fiscal quarter of 2013. Revenue climbed 3% to $1.05 billion, just shy of what Wall Street was expecting. Cintas cites lower paper prices as a factor. However, profitability grew at a double-digit percentage clip, and Cintas' quarterly earnings of $0.60 a share narrowly beat out the pros' estimates. The company's guidance is also comfortably within the ballpark of what Wall Street's been forecasting.
• It's iPhone 5 Day for Apple (AAPL) fans. The world's most valuable company's iconic smartphone hits U.S. retailers on Friday morning, so if you were planning on swinging by an Apple Store to drop off your iPad for a repair or to check out the new Macs, you might want to reschedule for a day when the place won't be quite so be mobbed. Apple shares set new highs earlier in the week, and it will be interesting to see where the stock price goes from here.
Motley Fool contributor Rick Munarriz does not own shares in any of the stocks in this article. The Motley Fool owns shares of Apple. Motley Fool newsletter services have recommended buying shares of Cintas and Apple. Motley Fool newsletter services have recommended creating a bull call spread position in Apple.