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Following a major jump in filings (23 for the last two weeks of April), the surge continued in May with another 18 deals filed so far. We’ve also just returned from a trip to the confectionary capital of the world (Silicon Valley) and the combination of commercial momentum and a receptive market is beginning to restore the “IPO aspiration” for many growth companies.

There were 14 pricings in the first two weeks of May; half of them were in sectors we follow and have been added to the ecosystem. These include Renren (NYSE:RENN), RPX (NASDAQ:RPXC), Boingo Wireless (NASDAQ:WIFI), NetQin Mobile (NYSE:NQ), FriendFinder (FFN) and Jiayuan.com (NASDAQ:DATE).

There are 10 deals in active marketing as we write this. A few of these are high on our list, including: Active Network, LinkedIn and Solazyme. In addition, we expect to add Freescale Semiconductor and Sabre to our ecosystem post-pricing.


Performance

For the first half of May the average stock in the IPO Candy Ecosystem was down 3%. The top 10 names were up 19% and the bottom 10 were down 25%.

The best performers are shown in the table. It’s a mixed bag, but we note that Tranzyme (TZYM) has done fairly well, and we’ve been eyeing that one because gastrointestinal disorders are more prevalent and less treatable than many U.S. investors realize.

Top 5 for first half of May

Company

Ticker

Gain

Area

ServiceSource

SREV

+43%

Revenue Management

Dynavox

DVOX

+35%

Speech Processing

Transzyme

TZYM

+19%

Gastro Disorders

GenMark

GNMK

+18%

Molecular Diagnostics

Tornier

TRNX

+18%

Medical Devices

On the downside, Sky-mobi (NASDAQ:MOBI) took a beating as we noted in a recent post on May 6th. We removed MOBI from the IPO Candy Folio when the stock came under attack from notable short seller and stock critic Citron.

Also on the losing side were once high-flier Motricity (MOTR) and very overvalued IntraLinks (NYSE:IL), which we have noted as a valuation risk since their debut.

Bottom 5 for first half of May

Company

Ticker

Loss

Area

Sky-mobi

MOBI

-46%

Mobile Apps China

Motricity

MOTR

-35%

Mobile Data Solns

IntraLinks

IL

-32%

Enterprise Collab

Bitauto

BITA

-23%

Online Auto China

ChinaCache

CCIH

-22%

China CDN

Selected Company Morsels

The CEO of OpenTable (NASDAQ:OPEN) departed to head VC firm Andreesen Horowitz. The company promoted its CFO to take over the CEO job.

We didn’t have time to visit and take pictures of the new Tesla (NASDAQ:TSLA) showroom in San Jose, but we frequently heard from people that they were eager and “on the waiting list” for the new Tesla S. Tesla also said it was seeking funding for an SUV, the so-called Tesla X.

RealPage made an interesting acquisition by buying Compliance Depot, which will improve their positioning in the multi-family rental unit market.

DemandMedia pleased investors with solid results but also pledged to invest in making improvements to the quality of their online content to avoid falling prey to lower viewership based on Google search algorithm changes.

IPO Candy Folio Update

For the first time, the IPO Candy Folio underperformed the Russell 2000 for the first two weeks of May. The IPO Candy Folio declined 5.5% during this time versus a decline of 3.4% for the Russell 2000.

Our Folio continues to be up 9% YTD versus a gain of 6.6% for the Russell 2000. This week we plan to add some new names, including Renren, Jiayuan and RPX.

More information and disclosures regarding the IPO Candy Folio can be found here.

The Pipeline

We’ve updated the pipeline with the new filings and deals in active marketing that we are following. We also got caught up on deals that are filed but not yet in active marketing, and expanded the “On The Shelf” section accordingly.

See the updated pipeline table in the IPO Candy Ecosystem for more details.

Coverage and the Calendar

Coverage is soon expected for: Zipcar (on-demand cars), Ellie Mae (online mortgages), Sequans (4G semiconductors), Responsys (online marketing), and 21 Vianet (Chinese datacenters.)

Lockups are coming off for Booz Allen, Bitauto, LPL Investment, Aeroflex and FXCM.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Additional disclosure: We do manage the IPO Candy Folio which is run by a third party. We have no financial interest in it however.

Source: Eyes on the IPO Market: Week of May 16, 2011