Seeking Alpha
  • GoDaddy Racing To An IPO
    GDDY Yesterday, 4:29 PM Don Dion 4 Comments

    Summary

    • GDDY expects to raise $480,700,000 in its upcoming IPO, set for the week of 3.30.2015.
    • Lead Underwriters: Citigroup Global Markets, JPMorgan Securities and Morgan Stanley & Co.
    • Net losses persist, but revenues are strong and growing steadily. GDDY is a dominant player in its field.
    • We suggest investors consider buying in.
  • U.S. IPO Weekly Recap: SolarEdge Shines While Other IPOs Fall Flat
    GDDY, SEDG, ENPH Yesterday, 7:39 AM Renaissance Capital IPO Research Comment!
  • SolarEdge: Standout In The Solar PV Inverter Industry
    SEDG Fri, Mar. 27, 7:00 PM Simple Investment Ideas 3 Comments

    Summary

    • SolarEdge just had an incredibly successful IPO on Thursday, raising approximately $126M.
    • SolarEdge has a technological edge moving forward, which clearly shows in its dominance of the distributed solar optimization space.
    • SolarEdge has a first mover's advantage in the incredibly promising solar PV inverter industry, and has already established extremely impactful business relationships.
    • While SolarEdge's strong business relations with leading residential solar companies, namely SolarCity, give it a huge competitive edge, this overdependence on a few large players also poses significant risks.
  • Kornit IPO Signals Modernization Of The Textile Industry
    KRNT Fri, Mar. 27, 12:51 PM APBK Capital 1 Comment

    Summary

    • Kornit is a leader in leading the digital revolution in textile printing.
    • Promising growth and a strong business position are favorable investment factors.
    • Based on historic performance and projections, the IPO valuation appears a bit lofty.
  • IPO Preview: Jernigan Capital
    JCAP Fri, Mar. 27, 1:34 AM IPOdesktop 2 Comments

    Summary

    • Funding of incoming self-storage mortgages with equity kickers depends on a successful IPO.
    • No rev. or earnings, dividend not specified. Pre-IPO JCAP has capital of $1000.
    • Selling 95% on the IPO.
  • Why We PASS On GoDaddy IPO
    GDDY Thu, Mar. 26, 3:02 PM ProfessorFX 5 Comments

    Summary

    • Consumer Rankings Users rank GoDaddy #8 of to 10 Web Hosting Picks of 2015.
    • GoDaddy is a mature company…upside is not promising.
    • Incredibly competitive market and four straight years of $100+ million losses are not a good combination.
  • Apigee Gambles On Being First Out Of The Gate With Its IPO
    APIC Thu, Mar. 26, 12:29 PM Khurram Aziz Comment!

    Summary

    • Apigee is a San Jose-based company that makes cloud software.
    • The company offers an "API management and predictive analytics platform."
    • Apigee wants to raise $86 million on a total valuation of $700 million.
    • Apigee represents a shift from traditional business to a more dispersed business model.
  • IPO Quiet Period Expiration: MaxPoint Interactive
    MXPT Thu, Mar. 26, 9:32 AM Don Dion 1 Comment

    Summary

    • MaxPoint offers business intelligence, marketing automation software, and digital advertising services in the U.S.; its 25-day IPO quiet period expires 3.31.2015.
    • On 4.1.2015, MaxPoint’s IPO underwriters, including Deutsche Bank, Goldman Sachs, Pacific Crest, Needham, and William Blair, can release research reports and recommendations.
    • Research has seen above-market returns of ~2% at firms’ IPO quiet period expirations in the days surrounding the event.
    • Investors might consider buying earlier than the expiration date for full gains.
  • Investing In The Sunrun IPO: The Next Big Solar IPO For 2015
    SCTY, TAN, VSLR Thu, Mar. 26, 6:31 AM Green Chip Stocks 2 Comments
  • IPO Preview: SolarEdge Technologies
    SEDG Thu, Mar. 26, 2:15 AM IPOdesktop 2 Comments

    Summary

    • A leading provider of intelligent inverter solutions that are changing the way power is harvested and managed in solar PV systems.
    • Rev. +141%. SolarCity accounted for 19.1% of rev. in '14.
    • Market expected to grow 46%, compound annual growth rate.
    • Annualized (tax sheltered by losses) P/E of 40; annualized price-to-sales of 1.7. 21% gross profit, up from 12%, as top line rev. grows.
    • Net income 4% of rev., up from a 23% loss. Price-to-book of 4.
  • IPO Preview: ViewRay
    VRAY Thu, Mar. 26, 1:38 AM IPOdesktop 1 Comment

    Summary

    • Designs, manufactures and markets MRIdian, the first and only MRI-guided radiation therapy system to image and treat cancer patients simultaneously.
    • If 50% of backlog converted to sales, '15 sales will be up 430%. Rev +103%, '14 vs '13.
    • -43% gross margin, -528% loss for '14.
    • P/E of -5.5, indicates high cash burn rate relative to market cap.
  • Franklin Financial Network Keeps The Community Bank IPO Trend Going
    FSB Wed, Mar. 25, 1:57 PM APBK Capital Comment!

    Summary

    • Franklin Financial Network operates 11 bank branches in Tennessee.
    • The company carries a strong balance sheet and an appropriately priced IPO.
    • Long-term growth prospects give the stock plenty of future upside.
  • ViewRay's IPO Has Plenty Of Potential
    VRAY Wed, Mar. 25, 1:02 PM APBK Capital 1 Comment

    Summary

    • ViewRay sells the first and only FDA-approved, MRI-guided linear accelerator.
    • The technology allows healthcare providers to treat previously unreachable cancers with radiation therapy.
    • The race is on - ViewRay faces heavy competition from established competitors that are quickly developing similar products.
  • First Data: Processing The Potential IPO
    FDATA Wed, Mar. 25, 12:41 PM Nicholas Durante 4 Comments

    Summary

    • First Data reported its first profitable quarter since 2007.
    • The payment processing industry is evolving with First Data leading the way.
    • I've outlined an early look into what will most likely be the biggest IPO of 2015.
  • Jernigan Capital IPO Adds A Little Risk To The Self Storage REIT Market
    JCAP Wed, Mar. 25, 9:52 AM APBK Capital 1 Comment

    Summary

    • Jernigan Capital was founded by Dean Jernigan, former CEO of CubeSmart and Storage USA.
    • The company aims to refinance riskier loans that are coming due with high-yield structured deals.
    • The REIT should generate better than average returns, given the risk adjustment,
  • SolarEdge IPO Could Change Solar Energy Forever
    SEDG Wed, Mar. 25, 9:08 AM APBK Capital 6 Comments

    Summary

    • SolarEdge makes a promising device that could take over the solar industry.
    • The high-growth, small company comes with considerable risk from the competitors, suppliers, and IPO risks.
    • SolarEdge is a leader in a great emerging technology, with excellent sustainable revenue streams, investors should consider this stock for their portfolio.
  • Cellectis Appears To Be Another Great CAR T-Cell Pharma Company
    CLLS Tue, Mar. 24, 2:05 PM APBK Capital 9 Comments

    Summary

    • Cellectis manufactures cancer therapies using CAR T-cell technology.
    • The company's current pipeline is all in pre-clinical stages, but the technology appear promising.
    • The market currently values other CAR T-cell companies between $3-$5 billion, after approval for clinical tests expect similar valuations for Cellectis.
  • ViewRay Inc. IPO: Less Than Enticing
    VRAY Tue, Mar. 24, 12:32 PM Don Dion 2 Comments

    Summary

    • VRAY, designer/manufacturer of a MRI-guided radiation therapy system, is set to IPO on NASDAQ on 3.25.2015.
    • Lead Underwriters: Cowen & Company, Stifel Nicolaus & Company Inc.; Underwriters: Brean Capital and BTIG.
    • We are not encouraged by VRAY's growing losses or its relatively small team of underwriters.
    • We suggest investors hold off for now.
  • Investar Holding Is Back In The Game
    ISTR Tue, Mar. 24, 10:19 AM Dallas Salazar Comment!

    Summary

    • ISTR addressed oil and gas contagion fears head on and put that concern to bed at Q4 reporting.
    • ISTR also appears to be trying to get back into the loan selling game as well having announced subsequent to year-end sales of size.
    • The primary differentiating feature for ISTR would be its loan selling capabilities so seeing this get going would be a welcomed development.
    • A 3.5% of outstanding float buyback and a small dividend also show that ISTR is trying to create an all-in returner for shareholders, something I appreciate.
    • I'm not willing to buy the "trust me" story at ISTR just yet but I'm closely watching for continuation of these bullish developments - ISTR is back on the board.
  • SolarEdge IPO Looks Bright
    SEDG Tue, Mar. 24, 9:48 AM Don Dion 2 Comments

    Summary

    • Israel-based SEDG, a solar photovoltaic manufacturer, expects to raise $144.9 million in its upcoming IPO, set for 3.26.2015.
    • Lead Underwriters: Deutsche Bank, Goldman Sachs; Underwriters: Cannacord, Needham & Company, Roth Capital Partners.
    • SEDG’s revenues have been increasing steadily, and the company recently posted its first net profit.
    • We are encouraged by promising signs in the global solar industry and suggest investors consider buying in.
  • Habit Restaurants Is Really Expensive
    HABT Tue, Mar. 24, 8:42 AM Dallas Salazar 21 Comments

    Summary

    • HABT isn't just expensive, it's being priced at 2018/2019 numbers.
    • Pre-IPO holders have taken notice with HABT announcing a secondary offering on behalf of an existing shareholder(s).
    • I'd be willing to pay a premium for HABT just not 3 or 4 full years worth of premium.
    • Avoid HABT for now and reconsider on a correction.
  • Sohu Shops Tired Sougou For 2015 IPO
    SOHU Mon, Mar. 23, 5:40 PM Doug Young Comment!
  • Who Will Sell Uber 100 Million Cars?
    Mon, Mar. 23, 9:18 AM Anton Wahlman 27 Comments

    Summary

    • Uber is expanding to serve potentially any of 3 billion people.
    • While this will cause some people to not buy/own cars, it will mean more cars sold for use by Uber drivers.
    • For Uber drivers to use a smartphone app cannot be sustainable, given safety concerns.
    • Automakers need to prioritize embedding the Uber app into their head unit (infotainment screen) just like any mapping/navigation app.
    • The first automaker to do this, could sell millions of cars to Uber drivers worldwide. Conversely, a laggard could lose a major sales opportunity.
  • De-Constructing The New Goldman Sachs BDC
    Mon, Mar. 23, 8:17 AM Nicholas Marshi 5 Comments

    Summary

    • The first of two articles about the new Goldman Sachs Business Development Company, which went public March 17 with the ticker GSBD.
    • In this first article we review all the main features of GSBD derived from our reading of the Prospectus including history, strategy, performance and outlook and much more.
    • In the second article-coming in a week-we will discuss the opportunities and risks of investing in GSBD based on what we know so far.
  • Week Ahead: Up To 9 IPOs During The Week Of March 23 Led By A Billion-Dollar Biotech
    CLLS, VRAY, VLRX Mon, Mar. 23, 1:41 AM Renaissance Capital IPO Research Comment!
  • IPO Lockup Expiration: Wayfair
    W Sat, Mar. 21, 12:31 PM Don Dion 6 Comments

    Summary

    • On March 31, 2015, the 180-day lockup period for Wayfair expires; at this point, Wayfair's 10+ major pre-IPO shareholders will have a first chance to sell their holdings.
    • The event could cause a significant price drop; research has shown declines of ~-5% in the days surrounding the expiration.
    • Wayfair has been successful in its first six months of public trading; insiders could be ready to take profits.
    • We suggest selling W early to take full advantage of the event.
  • IPO Lockup Period Expiration: Yodlee
    YDLE Sat, Mar. 21, 12:29 PM Don Dion Comment!

    Summary

    • On April 1, 2015, the 180-day lockup period for YDLE expires; at this point, YDLE’s major pre-IPO shareholders will have a first chance to sell their holdings.
    • Abnormal negative returns have been found to occur in the days surrounding a firm’s quiet period expiration as investors sell in anticipation of a supply shock and price drop.
    • While YDLE does show promise, a lagging stock price and increasing losses could trouble investors, leading them to cash out/ move on.
    • We suggest shorting YDLE at least one week prior to April 1st to take full advantage of possible declines.
  • U.S. IPO Weekly Recap: 2 Firms Go Public As A Birmingham Bank Bounds While Med-Tech Misses
    NCOM, STDY, VLRX Sat, Mar. 21, 8:00 AM Renaissance Capital IPO Research Comment!
  • IPO Preview: Valeritas
    VLRX Fri, Mar. 20, 1:30 AM IPOdesktop Comment!

    Summary

    • A commercial-stage medical technology company focused on developing innovative technologies to improve the health and quality of life of people with Type 2 diabetes.
    • P/E of -3.2, indicating very heavy cash burn relative to market cap.
    • Revenue +219%. Price-to-sales of 18. Price-to-book of 4.5, relatively high.
  • IPO Preview: SteadyMed
    STDY Fri, Mar. 20, 12:28 AM IPOdesktop Comment!

    Summary

    • A specialty pharmaceutical company focused on the development and commercialization of therapeutic product candidates that address the limitations of market-leading products in certain orphan and other well-defined, high-margin specialty markets.
    • No revenue. P/E of -8.4, indicating moderately heavy cash outflow relative to market cap.
    • Price-to-book of 2.4. No clinical trials.
  • SteadyMed IPO Looks Shaky
    STDY Thu, Mar. 19, 7:29 PM Don Dion Comment!

    Summary

    • SteadyMed develops and markets variations on leading drugs to address limitations those drugs have in treating certain orphan diseases.
    • IPO underwriters include RBC Capital Markets, Wells Fargo Securities, and JMP Securities.
    • With lead products early in the commercialization stage and increasing net losses, STDY looks like a risky bet for investors.
  • IPO Lockup Expiration: AAC Holdings
    AAC Thu, Mar. 19, 2:26 PM Don Dion Comment!

    Summary

    • March 31, 2015, concludes the 180-day lockup period for AAC.
    • At this point, AAC's major pre-IPO shareholders (~8 individuals) will have a first chance to sell their shares, which could depress the share price.
    • Abnormal negative returns have been found to be ~(5%) in the days surrounding the expiration event for many firms.
    • We suggest experienced investors consider selling AAC ahead of the event to take full advantage of any declines.
  • Third Time Is Not A Charm In GoDaddy's IPO Case
    GDDY Thu, Mar. 19, 2:16 PM Lior Ronen 13 Comments

    Summary

    • Web services provider GoDaddy files for IPO for the third time since it was founded.
    • The PE-controlled company offers a complex Up-C structure for its offering and directs most of the proceeds to its principal shareholders.
    • Current growth in the company’s margins seems too little and too late.
    • GoDaddy is an IPO to avoid.
  • SteadyMed Could Pay Off Well For Early Investors
    STDY Thu, Mar. 19, 12:45 PM APBK Capital 1 Comment

    Summary

    • SteadyMed is in the process of making a rare-disease pharmaceutical drug.
    • Their drug will use a proprietary pump that is discrete and easier to use than current treatment methods.
    • The company is also developing two pain management drugs that can also use the pump, expanding the at-home pain treatment market.
  • Summit Strikes Gold With Its IPO
    SUM Thu, Mar. 19, 11:46 AM Khurram Aziz Comment!

    Summary

    • During its IPO, Summit Materials Holding, Inc. sold all of its 22.2 million offered class “A” shares, which was priced at $18 per share. The midpoint of the expected $17.
    • The IPO generated approximately $400 million for the company which it has said would be used to pay down debt.
    • Shares of Summit Materials were up by 13 percent the day after the IPO.
    • Summit saw a revenue increase during 2014. Although revenue was up, Summit’s aggressive acquisition strategy have kept the company from showing a profit.
  • IPO Preview: National Commerce
    NCOM Thu, Mar. 19, 2:26 AM IPOdesktop Comment!

    Summary

    • Bank holding company headquartered in Birmingham, Alabama.
    • P/E of 30 seems high; rev 38%+; income 48%+.
    • Price to-book of 1.1; price-to-tangible book of 1.3.
  • Powerful Steps For Goldman Sachs With BDC IPO
    GSBD Wed, Mar. 18, 8:13 PM Don Dion 3 Comments

    Summary

    • GSBD, Goldman Sachs' BDC arm, is set to go public March 18th.
    • Syndicate includes Merrill Lynch, Credit Suisse, Citibank, Wells Fargo, Morgan Stanley, Goldman Sachs, and others.
    • GSBD is showing a solid balance sheet and increasing net investment income.
    • Despite hot competition, we are optimistic on this IPO and suggest investors consider buying in for the long term.
  • Valeritas IPO: Too Early To Tell
    VLRX Wed, Mar. 18, 4:48 PM Don Dion Comment!

    Summary

    • VLRX develops and markets solutions and treatments for individuals with Type 2 diabetes.
    • Lead Underwriters: Leerink Partners, Piper Jaffray; underwriters: Oppenheimer & Company.
    • While VLRX has more than doubled revenues from 2013-2014, these are still overshadowed by greater losses.
    • We suggest investors hold off on VLRX for now, also given its small team of underwriters.
  • Valeritas IPO Attempts To Disrupt The Diabetes Market
    VLRX Wed, Mar. 18, 2:38 PM APBK Capital Comment!

    Summary

    • Valeritas makes an insulin delivery patch for Type 2 diabetes treatment.
    • The company's patch is an alternative to more traditional injections and oral medications.
    • The company hopes to leverage convenience and effectiveness to disrupt the current diabetes treatment market.
  • Tantech Holdings Attempts To List On The Nasdaq
    TANH Wed, Mar. 18, 11:26 AM APBK Capital Comment!

    Summary

    • Tantech, a Chinese-based single-focused consumer goods company, is going alone to make an IPO in the US.
    • The company currently sells bamboo charcoal products, which are rapidly growing and show strong margins.
    • The risks associated with a Chinese company's IPO without US investment bank support outweigh they near-term potential.
  • MaxPoint Interactive: Strong Growth And Volatility
    MXPT Wed, Mar. 18, 10:43 AM Nicholas Durante Comment!

    Summary

    • MXPT had a disappointing IPO and may have scared off investors.
    • With heavily leveraged growth and such recently large jumps in revenue, MXPT might be too volatile for most investors.
    • We have to question how sustainable the growth and customer retention will be in the future.
  • IPO Preview: Goldman Sachs BDC
    GBDC Wed, Mar. 18, 1:35 AM IPOdesktop 4 Comments

    Summary

    • Mid-market junk bonds.
    • Merrill is the lead underwriter, so we know it is a retail deal. Just another BDC. Goldman only owns 20% pre-IPO.
    • Its price-to-book of 1.05 is higher than those of AINV and PSEC, but lower than GBDC - see "compare" below.
    • Closed-end funds often trade at a discount to net asset value. Yield of 8.9%, lower than those of AINV and PSEC.
  • Goldman Sachs Is Forming An Opportunity-Rich Business Development Corporation
    GSBD Tue, Mar. 17, 6:40 PM APBK Capital 5 Comments

    Summary

    • Goldman Sachs is spinning off a business development corporation focused on middle-market debt investments.
    • The experienced team of managers aims to capitalize on a currently underserved market opportunity.
    • Given the current market conditions and the ability to fully diversify, this is a very attractive IPO.
  • National Commerce - A High-Growth Community Bank IPO
    NCOM Tue, Mar. 17, 6:07 PM APBK Capital Comment!

    Summary

    • National Commerce Corporation aims to take advantage of organic and acquisition growth opportunities.
    • The growth-focused community bank may be able to leverage current market conditions to fill a void left of consolidating regional banks.
    • Investors looking to get into the high-growth area of the financial industry should consider National Commerce.
  • Week Ahead: 3 IPOs Planned For The Week Of March 16
    STDY, UTHR, BLPH Mon, Mar. 16, 5:18 PM Renaissance Capital IPO Research 1 Comment
  • MaxPoint Disappoints With IPO, But Is It Still A Viable Investment?
    MXPT Mon, Mar. 16, 7:58 AM Khurram Aziz 2 Comments

    Summary

    • MaxPoint Interactive is a digital advertising firm that provides a cloud-based marketing software platform for its customers to drive in-store sales of national brands.
    • The IPO was intended to raise $75 million pricing its available 6.5 million shares at $11.50 (midpoint of the range).
    • Although the stock traded at a high of $10.30 during the first day of the IPO, the price per share has been steadily falling until it closed at $9.79 on.
    • Prior to the IPO, MaxPoint had reported a loss of $5.4 million for 2014, a profit of $2.6 million in 2013 and a loss of $5.1 million in 2012.
  • What's In The Box? Nothing Good, Apparently
    BOX Sun, Mar. 15, 2:38 PM Jeremy Raper 25 Comments
  • U.S. IPO Weekly Recap: Summit Materials Lays The Foundation For PE-Backed IPOs
    SUM, PGIS Sat, Mar. 14, 2:19 PM Renaissance Capital IPO Research 1 Comment
  • MaxPoint Disappoints With IPO, But Is It Still A Viable Investment?
    MXPT Fri, Mar. 13, 11:08 AM Khurram Aziz Comment!

    Summary

    • MaxPoint Interactive is a digital advertising firm that provides a cloud-based marketing software platform for its customers to drive in-store sales of national brands.
    • The IPO was intended to raise $75 million, pricing its available 6.5 million shares at $11.50 (midpoint of the range).
    • The stock traded at a high of $10.30 the first day of the IPO, but the price per share has been steadily falling until it closed at $9.79 in March.
    • Prior to the IPO, MaxPoint had reported a loss of $5.4 million for 2014, a profit of $2.6 million in 2013 and a loss of $5.1 million in 2012.
  • IPO Quiet Period Expiration: Columbia Pipeline Partners LP
    CPPL Fri, Mar. 13, 10:51 AM Don Dion 1 Comment

    Summary

    • The 40-day quiet period on CPPL will come to an end 3.18.2015, allowing the firm's IPO underwriters to publish reports and recommendations for the first time on 3.19.
    • CPPL owns, operates and develops natural gas transmission and storage assets; powerful underwriters include Barclays, BofA Merrill Lynch, Citigroup, Credit Suisse, Goldman Sachs, J.P. Morgan, Morgan Stanley, and more.
    • Above market returns have been observed for firms with strong underwriters in the days surrounding their IPO quiet period expiration.
    • With strong, growing revenues and net income, for the nine months ended Sept. 30, 2014, we see the dollars continuing to flow for CPPL investors into the foreseeable future.