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, IPO Candy (47 clicks)
Long/short equity, research analyst, IPOs, tech
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The 14 recent new IPO filings are robust and above the average but down from the very high rates in late April/early May. We'll be taking a closer look at six of those for follow up work.

Pricings were down a bit to 8 from 14 in the first two weeks of May. A good portion were in our coverage areas, including: LinkedIn (NYSE:LNKD), Yandex (NASDAQ:YNDX), The Active Network (NYSE:ACTV), Freescale Semiconductor (NYSE:FSL) and Solazyme (NASDAQ:SZYM).

There are only 3 deals in active marketing during this holiday week but all of them are on our coverage list.

  • Fusion-io: Provides very high performance servers used by data-intensive companies like Facebook.
  • Taomee Holdings: An online community for children in China with XXm members and yym other stuff.
  • Sabre Industries (NASDAQ:SABR): Infrastructure for electrical distribution and wireless communications (towers.)

The success of the LinkedIn IPO has created some controversy over how the process is handled but it adds more steam to the "go-IPO" movement. Companies may crowd the June calendar to try and price before the summer.


For May the average stock in the IPO Candy Ecosystem was down 5%. The top 10 names were up 38% and the bottom 10 were down 32%.

The best performers in May put up some big numbers. Sequans was a "cold deal" that found some footing after investors started to appreciate them as a wireless play. The coverage analysts love ServiceSource (NASDAQ:SREV). AcelRx (NASDAQ:ACRX) was another cold deal but we were impressed with management on the roadshow. Maybe it's another Ventrus (VTUS) in the making.

Top 5 for May








Network Security




4G Semiconductors




Service Revenue Manage




Pain Relief Drugs




Medical Devices

Most of the big losers broke down in the first half of May so the table is little changed from the last Candygram. The only name we would have been short in the IPO Candy Folio, if we were able to short there, would have been IntraLinks. We're still looking at Sky-mobi and Motricity to see if there is value at these levels. Too soon to tell.

Bottom 5 for May








Mobile Apps China




Mobile Data Solns




Enterprise Collab

NOAH Hldgs



Online Auto China




Debit Cards

Selected Company Morsels

CDC and CDC Software (CDCS) announced that they were going to simplify their corporate structure and begin paying a dividend. So far they company has seen nothing but lack of interest in their "CRM roll-up strategy" in China.

Demand Media (NYSE:DMD) beefed up its management team post-IPO, adding a new VP of investor relations from THQ in the process. (NYSE:YOKU) raised another nearly $600m in a secondary offering.

Convio (NASDAQ:CNVO) is hosting an investor day in NYC (possibly their first) on June 8 at the Marriott Marquis from 9am to 1pm EST.

SciQuest (NASDAQ:SQI) announced the departure of their COO for "personal reasons."

Tesla (NASDAQ:TSLA) is out raising more capital to fund their expansion and new car models.

SPS Commerce (NASDAQ:SPSC) paid $11m to acquire a company called Direct EDI, which adds 1,500 customers to their list.

A123 Systems (AONE) revealed some new technology their wholly-owned company 24M hopes to bring to market to make batteries cheaper.

IPO Candy Folio Update

May was a rough month for stocks and the IPO Candy Folio performed very much inline with the Russell 2000.

We did manage to add to the portfolio during the low point of May and as a result went from 9% to 5% cash. Specific portfolio changes and updates are made using the system at Institutional Folios. See the link below for more information.

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.

Coverage and the Calendar

We added price targets for several new coverage names, including: 21 Vianet (NASDAQ:VNET), Sequans, Ellie Mae (NYSE:ELLI), Zip Car (ZIP), Tranzyme (TZYM), Qihoo 360 (NYSE:QIHU) and ServiceSource.

Coverage expected in June for: Boingo Wireless (NASDAQ:WIFI), Renren (NYSE:RENN), RPX Corp (NASDAQ:RPXC), NetQin Mobile (NYSE:NQ), FriendFinder (FFN), Jiayuan (NASDAQ:DATE) and LinkedIn.

Lockups are coming off for Youku (YOKU), CTPartners (NYSEMKT:CTP), DangDang (NYSE:DANG), Bona Film (NASDAQ:BONA), SemiLEDS (NASDAQ:LEDS), Sky-mobi (NASDAQ:MOBI), iSoftStone (NYSE:ISS), FleetCore (NYSE:FLT), RigNet (NASDAQ:RNET) and Ventrus (VTUS).

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