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This article will evaluate five initial public offerings to see if they should be part of your portfolio.

Zipcar Inc. (ZIP) has a market cap of $702.7 million with a negative price to earnings ratio. The stock has traded in a range between $16.50 and $31.50. The stock first traded on April 14, and the original offering price was $18.00. The stock opened at $30.00 and closed the day at $28.00. The current stock price is around $18.00. The company reported second-quarter revenues of $61.55 million compared to revenues of $45.96 million in the second quarter of 2010. Second-quarter net income was $-5.56 million compared to net income of $-5.22 million in the second quarter of 2010.

Zipcar is a car sharing network that operates in urban areas and near college campuses. Members make reservations for cars by telephone or online and use their membership cards to enter their reserved vehicle. There is no need for human contact. The cars can be leased for as little as $7.50 per hour. The company has not yet made a profit, but for the quarter ending on June 31st the company increased its members from 576,914 to 604,571. Year-over-year second quarter revenues increased by 33.9%.The Zipcar idea is fresh and innovative, but the company has never come near making a profit. On September 14, CNBC stock analyst Jim Cramer endorsed the company. Zipcar could be a terrific investment for those who are willing to take a risk and go for a home run. However, this is not a stock for a conservative investor.

Vera Bradley Inc. (NASDAQ:VRA) has a market cap of $1.46 billion with a price-to-earnings ratio of 25.87. The stock has traded between $22.00 and $52.36. The current stock price is around $36. The stock first traded October 2, 2010 and the original price offering was $16.00. The stock opened at $23.00 and closed the day at $24.85. The company reported second-quarter revenues of $103.78 million compared to revenues of $80.07 million in the second quarter of 2010. Second-quarter net income was $13.63 million compared to net income of $9.17 million in the second quarter of 2010.

One of Vera Bradley’s competitors is Coach Inc. (NYSE:COH). COH is currently trading around $51 with a market cap of $14.64 billion and a price-to-earnings ratio of 17.38.

Vera Bradley produces and markets affordable handbags and accessories. The company had a successful IPO and has seen its stock price climb since the IPO. The company is no flash in the pan, as it has been in existence for 28 years. The company has extremely ambitious growth plans as it currently has 31 full-priced stores and plans to grow to 300 stores. Vera Bradley is an established company that has realized steady earnings growth. Since its IPO, the stock price has increased by almost 45%. If this company can meet its growth objectives, the stock could see a significant increase in price. I rate Vera Bradley Inc. as a buy.

China Cache International Holdings (NASDAQ:CCIH) has a market cap of $93.44 million with a negative price-to-earnings ratio. The stock has traded between $3.66 and $35.00. The stock first traded on October 1, 2010, and the original price offering was $13.90. The stock opened at $27.00 and closed the day at $27.15. The current stock price is around $4. The company has only provided quarterly earnings data for the first two quarters of 2011. The company reported second-quarter revenues of $22.9 million compared to the first quarter revenues of $20.7 million. Second-quarter net income was $-877,000 compared to net income of $487,000 in the first quarter of 2011.

CCIH is an internet content provider that has been called the Akami of China. Akami Technologies Inc. (NASDAQ:AKAM) is not a direct competitor to CCIH, but it does have a similar business model. AKAM is currently trading around $19 with a market cap of $3.44 billion and a price-to-earnings ratio of 18.59.

CCIH is currently trading just above its all-time low. Jim Cramer believes that “Chinese IPOs are like firecrackers; they rise high in the air and then explode.” Well that is exactly what happened with CCIH. The stock has been trading for just over one year and is down 89.1% off of its 52-week high. This is the kind of stock that might be of interest to a day trader, but should not be considered for a long-term investment. I rate China Cache International Holdings as a sell.

Renren (NYSE:RENN) has a market cap of $1.88 billion with a negative price-to-earnings ratio. The stock has traded in a range between $4.75 and $24.00. The stock first traded on May 4, 2011, and the original price offering was $14.00. The stock opened at $19.50 and closed the day at $18.01. The current stock price is around $5. The company has only provided quarterly earnings data for the first two quarters of 2011. The company reported second-quarter revenues of $30.4 million compared to first-quarter revenues of $20.6 million. Second-quarter net income was $751,000 compared to net income of $-2.6 million in the first quarter of 2011.

One of Renren’s competitors is Baidu Inc. (NASDAQ:BIDU). BIDU is currently trading around $105 with a market cap of $36.69 billion and a price-to-earnings ratio of 47.78.

Renren is an internet social networking company that has been called the “Chinese Facebook.” Investors learned that Renren had over-reported the number of its network users just prior to the company’s IPO. When asked about Renren, CNBC stock analyst Jim Cramer had this to say: "When it comes to China, I have no more faith in the number than I have in the teachings of Chairman Mao." The reliability of the financial data has been a problem around Chinese IPOs for some time. In spite of the misinformation, Renren had a strong IPO and closed at $18.01. In what is now typical for Chinese internet IPOs the stock price began to plummet almost immediately and is now trading just above its all-time lows. This is another stock that might be of interest to a day trader, but should not be considered as an investment. I rate Renren Inc. as a sell.

Ancestry.com (NASDAQ:ACOM) has a market cap of $999.03 million with a price-to-earnings ratio of 21.87. The stock has traded in a 52-week range between $20.67 and $45.79. The stock is currently trading around $22. The company reported second-quarter revenues of $101 million compared to revenues of $74.5 million in the second quarter of 2010. Second-quarter net income was $16.6 million compared to net income of $8.52 million in the second quarter of 2010. The company’s 2010 net income was up 72.7% from $21.3 million in 2009 to $36.8 million in 2010.

One of Ancestry.com's competitors is Google Inc. (NASDAQ:GOOG). Google is currently trading around $496 with a market cap of $160 billion and a price-to-earnings ratio of 17.88.

The stock of Ancestry.com first traded on November 5, 2009. The company has been profitable in every quarter since its IPO. In the second quarter, the company increased year-over-year revenues by 35.5% and net income by 94.8%. In spite of the company’s positive earnings result, the stock has performed poorly and is 52% off of its 52-week high. In June Jim Cramer interviewed Tim Sullivan, the company’s CEO. Sullivan said, “Every family has a historian, and this is the user the site aims for.” Cramer told Sullivan that you have a “terrific niche, undervalued business.” Ancestry.com has been consistently profitable and has the potential for strong earnings growth. The company’s current 21.87 price-to-earnings ratio is unusually low for a growing internet service provider. The recent drop in the stock price presents investors with a terrific buying opportunity. I rate Ancestry.com as a buy.

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

Source: 5 Red-Hot Recent IPOs: Are They Investment-Worthy?