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After a very stormy and shaky August (especially if you live around NYC) the IPO market is trying to right itself and get back into a rhythm. Most of the deals in active marketing decided to delay their offerings and may materialize in September if markets settle down. Two deals did price, though: Carbonite (NASDAQ:CARB) and Tudou Holdings (NASDAQ:TUDO). To get the deal done, Carbonite priced at $10 versus the $16 midpoint of the filing range. Carbonite is one we have liked and recently added to the IPO Candy Folio along with a few others (see below). Todou is another China-based online video player. Together with Youku, these two are the “Coke and Pepsi” of the Chinese video market.

So far September is off to a slow start. The media has been obsessed with the GroupOn IPO (NASDAQ:GRPN), which appears to be either getting killed by “bad market conditions” or dying a natural death based on their questionable financials and enfant terrible CEO.

New IPO filings have been more encouraging; there were 23 in August. Those we plan to include in the ecosystem and consider for coverage and inclusion in the IPO Folio are shown in the table below. One can’t help but notice the high number of companies that are still losing money (in some cases quite a bit) in this filing group. Unless the market becomes more risk friendly these companies may struggle to get public.

Company

Positioning

Comment

Website

Guidewire Software (NYSE:GWRE)

Insurance Software

Operational software for P&C insurance. Solid growth and profitability.

www.guidewire.com

MobiTV

TV Services

Delivery of TV to IP devices. Losing money.

www.mobitv.com

Bazaarvoice (NASDAQ:BV)

Social Commerce

“Word of mouth” marketing. Losing money.

www.bazaarvoice.com

Angie's List

Online Services

Consumer sourcing for service providers. Solid growth but surprisingly big losses.

www.angieslist.com

Jive Software (NASDAQ:JIVE)

Corporate Collaboration

Internal social networking style tools for the enterprise. Large losses.

www.jivesoftware.com

Genomatica (GENO)

IT for Chemicals

Bio-engineered processes for chemical production. Development stage.

www.genomatica.com

Brightcove (NASDAQ:BCOV)

Video Software

Helps publishers package and deliver video. Smaller revenues than we thought.

www.brightcove.com

Eloqua Limited (NASDAQ:ELOQ)

Revenue Mgmt SW

Revenue analysis, campaign and lead optimization. Solid growth, small losses.

www.eloqua.com

Community Choice (CCFI)

Financial SVCS

Banking services for the unbanked. $260m RR with 10% oper. profit.

www.ccfl.com

CyOptics (CYOP)

Optical NW

Integrated optical components. $120m RR with 27% GM and recent profitability.

www.cyoptics.com

FusionStorm Global

IT Services

Kind of an IT services rollup to a $700m+ firm with small losses.

www.fusionstormglobal.com

Chuy’s Holdings

Mexican Restaurants

Another profitable restaurant concept with solid growth and a 10% oper. profit.

www.chuys.com

Exa Corp.

Simulation SW

Slow growth, slim profits, niche.

www.exa.com (nice url!)

Era Group

Helicopters

What will investors pay for that?

www.erahelicopters.com

M/A-COM Technology

Wireless Semiconductors

Big growth to $300m RR, turned profitable with margins expanding.

www.macomtech.com

Vocera Comms

Mobile

Comms for hospitals, small, losing money.

www.vocera.com

There are only 2 deals in active marketing right now. Most companies seem to be waiting for at least a week of stability before starting their roadshows. Only time will tell if they can start in September or not.

Performance

The average stock in our ecosystem was actually up 1% in August, underperforming the S&P, which was up 5%. The top 10 names were up 28% and the bottom 10 were down 34%.

During the month, analysts noted that A123 Systems had fallen so far that it was a bargain stock. That helped to drive the fallen angel to a price greater than their cash per share.

Top 5

Company

Ticker

Gain

Area

A123 Systems

AONE

46%

Advanced Batteries

KiOR

KIOR

36%

Biofuels from pine trees

GenMark

GNMK

35%

Molecular Diagnostics

FXCM

FXCM

32%

Online FX Trading

HomeAway

AWAY

28%

Vacation Home Rentals

Bottom 5

Company

Ticker

Loss

Area

Taomee

TAOM

36%

Online Community

Epocrates

EPOC

38%

Mobile Drug Info

CTPartners

CTP

40%

Mgmt Recruiting

Motricity

MOTR

52%

Mobile Data Services

Camelot

CIS

52%

China IT Services

Of the losers, Motricity is the most striking with a drop of 52% in the month of August. In less than a year Motricity has declined from their post-IPO high of $30 to $2.10. A string of disappointing quarters and the departure of the CEO mark a massive disappointment for anyone who invested in this debacle. Might be due for at least a “dead cat” bounce at these levels.

IPO Candy Folio Update

We had the good fortune to eliminate 6 companies from the Folio in July ahead of some nasty market volatility and begin to nibble on some new opportunities.

This month we are continuing to gradually add to our positions and incorporate a few new names.

We made some changes in the IPO Candy Folio to “make room” for some newcomers.

Reductions

None.

Increases

  • RPXC, 2% to 3%, adding on pullback
  • ELLI, 3% to 3%, adding on pullback
  • YNDX, 2% to 3%, adding on pullback

New Positions

  • CARB, 3%, consumer online backup & restore
  • FIO, 2%, high performance computing HW
  • ACTV, 2%, internet service for active people

Our cash position drops back to 5% from 15%.

The Pipeline

There’s not much to talk about in active marketing now. However, we have added the filings to our pipeline spreadsheet, which now has a total of 80 filings that we are watching.

See the IPO Candy Ecosystem Pipeline table for more details.

Coverage and the Calendar

There are a couple of names due to banker coverage in the next few weeks: Carbonite and Tudou.

Lockups are due to come off for Tranzyme (TZYM), Qihoo 360 (NYSE:QIHU), ServiceSource (NASDAQ:SREV) and Cornerstone OnDemand (NASDAQ:CSOD).

Source: After Shaky August, IPO Market Attempts To Right Itself