IPOs Are Dead Again
The IPO market roared to life two weeks ago, fueled largely by the success of Splunk (NAS: SPLK) . The "big data" speedster went public at $17. Even though the company is trading off its earlier highs, the stock has still gone on to nearly double at yesterday's close of $33.95.
Most of the other companies that went public that week went on to post double-digit gains.
Unfortunately, last week was everything that the prior week was not. The four companies that dared to go public were initial duds.
Let's take a closer look at the companies that went public last week.
April 27, 2012
|Acquity (NYS: AQ)||$6||$5.75||(4%)|
|Edgen Group (NYS: EDG)||$11||$9.50||(14%)|
|Ares Commercial (NAS: ACRE)||$18.50||$17.82||(4%)|
|Envivio (NAS: ENVI)||$9||$9.20||2%|
You know it's a bad week when the winner is only trading 2% higher, and the other names close out the week in the red.
Acquity is a digital marketer. It has offices in 10 cities in the United States as well as a couple of offices in China.
Edgen is a Louisiana-based distributor of products to the energy sector. Edgen's specialty products include steel pipes and valves.
Ares Commercial Real Estate is a REIT that buys into middle-market commercial real estate loans.
Envivio offers solutions for multiscreen video processing and delivery. It was the only IPO to close higher last week, and the shares even managed to inch higher during yesterday's soft market.
There are more promising IPOs on the slate for this week, including private-equity firm Carlyle Group and apparel retailer Tilly's. EverBank Financial -- the banking company that's best known for its high-yielding money market fund and CDs -- also plans on going public later this week.
It really can't get worse. Right?
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At the time this article was published The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.Longtime Fool contributor Rick Munarriz calls them as he sees them. He does not own shares in any of the stocks in this story. Rick is also part of theRule Breakersnewsletter research team, seeking out tomorrow's ultimate growth stocks a day early.
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