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GoDaddy Racing To An IPO
- 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.
Goldman Sachs Starting To Shake As Legal Costs Rise
- GS is raising its estimate for legal costs to $3 billion, being the target of a federal civil lawsuit, pertaining to residential mortgage-backed securities.
- Despite this, results are strong, and GS still boasts a competitive advantage among peers.
- While we continue to be optimistic on the firm's prospects in 2015, investors might consider other financial institutions, less embroiled in repeated scandals.
IPO Quiet Period Expiration: MaxPoint Interactive
- 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.
ViewRay Inc. IPO: Less Than Enticing
- 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.
SolarEdge IPO Looks Bright
- 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.
IPO Lockup Expiration: Wayfair
- 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
- 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.
GE Looking Attractive, Leaving Lending Business Behind
- General Electric continues to trim its banking business and expanding in global water and power.
- GE is well positioned geographically to carry out its ambitious plans and has the cash to be flexible.
- For income-oriented investors, GE has a solid dividend history; for growth investors, plenty of upside remains.
- We see a buying opportunity ahead of earnings in mid-April.
SteadyMed IPO Looks Shaky
- 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
- 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.
Powerful Steps For Goldman Sachs With BDC IPO
- 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 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.
Signet Jewelers Sparkles Ahead Of Late March Earnings Release
- SIG is looking strong heading into its next earnings release on March 26.
- The company is already seeing payoff from its Zales acquisition last year.
- Sales are increasing across the board, particularly during the last holiday season.
- The market has a history of reacting positively to SIG's earnings releases.
IPO Quiet Period Expiration: Columbia Pipeline Partners LP
- 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.
A Sturdy-Looking IPO For Summit Materials
- Infrastructure aggregate company SUM is set to price its IPO on NYSE on Wednesday, March 11, 2015.
- Strong underwriting team includes Citibank, Goldman Sachs, Barclays, Deutsche Bank, Merrill Lynch, Blackstone, and others.
- Summit’s revenue growth over the past 4 years has increased nearly 200%, although debt from acquisitions has topped $1 billion.
- We suggest investors consider buying into this IPO.
Could Yahoo! Be The Next New York Times?
- YHOO is proving it can thrive on its own - not as a guest player in Alibaba's success story.
- YHOO is building a media empire as rival NYT is flagging.
- Recent earnings are strong, showing enormous growth in mobile revenue and investment businesses.
- Despite some concerns about competition with other tech giants, YHOO still appears to be a promising growth stock in 2015.
- We suggest investors consider buying in ahead of its next earnings release in April.
IPO Lockup Expiration: Smart & Final Stores
- April 6, 2015, concludes the 180-day lockup period on SFS. At this point, SFS’ major pre-IPO shareholders will have first chance to sell their holdings.
- The potential for a sudden increase in stock available in the open market may cause a significant decrease in the price of SFS shares.
- We suggest investors consider selling early to take full advantage of potential declines.
- Our firm has observed abnormal negative returns of over (-5%) in the day (-11,+9) window of the IPO lockup expiration event day (0).
IPO Quiet Period Expiration: Invitae Corporation
- The 25-day quiet period on NVTA ends 3.9.2015, allowing its IPO underwriters (JPM, Cowen & Co., Leerink) to publish reports and recommendations on 3.10.
- NVTA is a company focused on bringing comprehensive genetic information into mainstream healthcare.
- Studies show a correlation between the quality and reputation of a firm’s underwriters and above-market returns at the expiration of many firms’ quiet periods.
- Investors who want to buy into NVTA may wish to take advantage of the strong opportunity presented by the upcoming quiet period expiration. We suggest buying days in advance.
Follow Buffett's Lead And Divest From Exxon Mobil
- Volatility may quickly become the new norm for giant XOM, given industry signals.
- Compared to its peers, XOM is increasingly struggling with regard to stock price and revenue growth.
- Earnings decreases are projected.
- Buffett recently divested entirely from XOM; we suggest investors consider doing the same.
IPO Quiet Period Expiration: Inovalon Holdings
- 3.9.2015 ends the 25-day quiet period on INOV. 3.10 is the first day the firm’s IPO underwriters can publish reports and recommendations.
- INOV provides cloud-based services to the healthcare industry.
- The quiet period expiration event often leads to above market returns in the days leading up to the event.
- Given INOV's strong early performance, we see the event as another opportunity to buy into a growing firm.
Alibaba: IPO Lockup Expiration
- March 18, 2015, concludes the 180-day lockup period on BABA.
- At this point, BABA's 20+ major pre-IPO shareholders will have first chance to take profits on one of the most high-profile IPOs in history.
- BABA's strong quarterly earnings will not likely detract from the desire of its insiders to at least cash out on some of their holdings.
- We suggest selling BABA in the days prior to the event to take full advantage of potential declines.
Maxpoint IPO Could Be Right On Target
- MXPT, a digital marketing company specializing in hyperlocal advertising, is set to IPO on NYSE on Friday, 3.6.2015.
- Lead underwriters include Goldman Sachs, Deutsche Bank, and Pacific Crest.
- MXPT has posted impressive growth figures, albeit accompanied by increasing losses.
- MXPT has demonstrated its impact with companies such as Starbucks and Barilla.
- We suggest investors strongly consider buying into this IPO.
Our Bank Of America: Ripe For A Short Sale
- BAC continues to disappoint America.
- With April earnings on the horizon, and negative investor sentiment surrounding previous results, we see a growing opportunity to short BAC stock.
- On average for the last ten quarters, BAC has dropped significantly, following its earnings release.
IPO Lockup Expiration: ReWalk Robotics Ltd.
- March 11, 2015 concludes the 180-day lockup period for RWLK; at this point, RWLK’s major pre-IPO shareholders will have a first chance to sell their shares.
- We've observed abnormal negative returns as high as -5.8% in the days preceding and following a firm's IPO lockup expiration.
- While RWLK had a strong start to trading, the stock faces current declines; some may be ready to cash out and move on.
- We see this as an impending short opportunity.
IPO Quiet Period Expiration: Easterly Government Properties
- The 25-day quiet period on DEA, a REIT that acquires and manages Class A commercial property, leased to the federal government, expires 3.3.2015.
- On 3.4.2015, DEA’s IPO underwriters, including Citigroup, Raymond James, RBC Capital, Piper Jaffray and others, will have a first chance to release reports and recommendations on DEA.
- We and others have found above market returns surrounding this expiration event.
- We suggest investors consider buying into DEA in the week preceding its expiration to take full advantage of potential gains.
IPO Quiet Period Expiration: Spark Therapeutics Inc.
- ONCE develops gene therapy that targets debilitating genetic diseases.
- The 25-day quiet period on ONCE will end 2.24.2015, allowing its IPO underwriters to publish reports and recommendations for the first time; this could lead to an uptick in price.
- Recent research shows above-market returns in the days surrounding a firm's quiet period expiration, particularly for firm with strong underwriters, like ONCE.
- We suggest investors strongly consider buying into ONCE, ahead of the event, for full gains.
Time For Second Helpings Of Shake Shack At Upcoming Quiet Period Expiration
- The 25-day quiet period on SHAK will come to an end 2.24.2015, allowing the firm's IPO underwriters to publish reports and recommendations for the first time on 2.25.2015.
- SHAK’s powerful underwriters, including J.P. Morgan, Morgan Stanley, Barclays, Goldman Sachs, and others, could influence SHAK’s stock price with a flood of good news at this point.
- We have observed above-market returns in the days surrounding IPO quiet period expirations, particularly when a company is backed by a strong syndicate.
- Investors who wish to get in on SHAK have a new opportunity to do so at the firm’s quiet period expiration.
IPO Quiet Period Expiration: InfraREIT
- The 25-day quiet period on HIFR will come to an end February 24, 2015, allowing the firm's IPO underwriters to publish reports and recommendations on February 25.
- HIFR's IPO underwriters include BofA Merrill Lynch, Citigroup, Morgan Stanley, UBS, Wells Fargo, and others.
- Research shows numerous powerful underwriters often correlating with share price increases around the time of a firm's IPO quiet period expiration.
- We see the upcoming expiration as a buying opportunity for savvy investors.
IPO Quiet Period Expiration: Entellus Medical Inc.
- The 25-day quiet period on ENTL will come to an end on February 23, 2015, allowing the firm's IPO underwriters to publish reports and recommendations of this medical technology firm on February 24.
- Research has shown that strong and numerous underwriters often correlate with share price increases around the time of a firm's IPO quiet period expiration.
- Given ENTL's solid early market performance and improving earnings statements, we are optimistic on the firm's long-term potential.
- We see the quiet period expiration as a short-term opportunity for savvy investors to buy into a growing firm.
Musical Chairs For Dimon's J.P. Morgan In Asia: Investors Thrown Off Balance
- JPM has asked two senior executives, tied to an investigation on the bank’s hiring practices in Asia, to leave the firm; this follows prior hiring scandals and management shuffling.
- JPM's results disappointed at home.
- Compared to rivals WFC and MS, JPM is not faring as well.
- We suggest investors steer clear of JPM in early 2015.
Tax-Minimizing Trades And Layoffs Rock Bank Of America
- According to internal documents, BAC has been spending billions of dollars in tax-minimizing trades.
- This is coupled with another major layoff of employees in its Charlotte headquarters.
- Results were relatively weak in mid-January, continually weighed down by legal payouts.
- We reiterate our caution on this mega bank in 2015 for cautious investors.
IPO Quiet Period Expiration: Box Incorporated
- The 25-day quiet period on BOX ends 2.17.15; at this point, BOX’s IPO underwriters will be able to publish analyses the firm for the first time on 2.18.
- BOX is a provider of a cloud-based, mobile optimized enterprise content collaboration platform.
- The event could lead to at least a temporary increase in the price of BOX shares; research shows above-market returns in the (-5, +2) days surrounding the Day (0) expiration.
- With a strong team of underwriters, we see the event as a new chance to buy into BOX.