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  • Sidoti & Company Search For Growth And Profit
    Wed, Dec. 17 SDTI Comment!

    Summary

    • Sidoti is a well-established boutique broker providing bare-bones research on small public stocks.
    • The business is stuck at a $30M run rate, which will continue as long as the company works at it.
    • Personnel costs consume over 70% of revenues, and other operating costs only allow for a slim profit.
    • The company could make it out at a low valuation of $6-$10M, but we'd encourage management to revamp for growth and try later.
  • ReWalk Robotics IPO - Exoskeletons For The Disabled
    Fri, Sep. 12 RWLK 13 Comments

    Summary

    • ReWalk is an early leader in the emerging space of using exoskeletons to allow paralyzed people to walk again.
    • Revenues are nascent, but they are FDA approved and working to expand coverage and adoption. The company has good technology and a solid management team.
    • The proposed market capitalization of $144M (at the $12 price) looks attractive given the market opportunity and margin potential.
    • Their partnership with the much larger Japanese company Yaskawa helps limit the risk for investors if the company founders badly in terms of execution.
    • ReWalk is still very risky with large investments and quarterly losses still coming.
  • GoDaddy IPO S-1 Teardown
    Fri, Sep. 5 DADDY 2 Comments

    Summary

    • An early read of the partial S-1 suggests a market cap of $2.8B to $4B post IPO.
    • Ownership by private equity firms complicates the structure and story a bit – could impact valuation.
    • Company strategy to increase ARPU using value-added services has had limited success so far.
    • Investors should expect an active M&A program post-IPO.
  • UBIC Is A Little Asian Autonomy
    Tue, Aug. 12 UBIC 1 Comment

    Summary

    • Since its stealthy IPO on the US market last year, this small Japanese software company is up nearly 300% YTD.
    • It is expanding its US presence with automated and AI-based solutions that analyze data for use in applications like e-discovery, fraud detection, and compliance.
    • With a market cap of nearly $400M and expected sales this year of just under $60M, the stock is no longer cheap, but still has potential.
    • Analyst coverage is limited, and the fundamental data around this company on services like Google Finance is wrong - understating its market capitalization and carrying a very high EPS figure.
  • El Pollo Loco Is Trading Like Chipotle
    Mon, Aug. 4 LOCO 3 Comments

    Summary

    • El Pollo Loco is one of the more attractive growth stories in the restaurant segment.
    • At $43/share, the shares are already trading in line with Chipotle.
    • Investors should wonder if this new IPO is now "priced for perfection".
  • Trupanion Makes Pet Health Insurance Attractive
    Mon, Aug. 4 TRUP Comment!

    Summary

    • Trupanion has built a better insurance plan for consumers with improved coverage and simple terms. By marketing via vets, their pet acquisition costs (PAC) are low relative to lifetime value.
    • This is a nascent, but potentially large market in the US. Our estimates are far lower than management, but we'd put the figure at $8B over the next 10 years.
    • Insurance margins are lower than other growth stories - this factors into our IV model yielding a price range of $13 to $20 over the next 12 to 18 months.
  • Care.com At A Crossroads
    Wed, Jul. 30 CRCM 7 Comments

    Summary

    • Care.com is suffering from slower growth post their successful IPO.
    • Management has some decisions to make about strategy.
    • By focusing on ARPU, they are shrining their TAM and the stock price.
    • A shift could unleash more growth and attract new investment interest.
  • Minerva Doesn't Get Much Activation
    Thu, Jul. 3 NERV 1 Comment

    Summary

    • The Minerva IPO got done at $6 - a 50% discount to the filing range.
    • Commercial success is a way off, but they are targeting schizophrenia, depression, insomnia, and Parkinson's disease - all big opportunities.
    • If either one of their Phase IIB trials is positive the current $114M market capitalization will look very cheap.
    • There is no near-term catalyst here, but the shares are worth keeping on the radar screen.
  • Mobile Iron Transcript - Big Upside If Model Plays Out
    Fri, Jun. 27 MOBL 15 Comments

    Summary

    • Mobile Iron (MOBL) is a "sleeper IPO" brought by Goldman Sachs and Morgan Stanley.
    • As a provider of software to help enterprises run on mobile devices, their market is red hot.
    • Growth and market share has been excellent, but the company is making big losses.
    • If MOBL can come close to their long-term model, the stock will be much higher.
  • A Closer Look At Ruckus Wireless
    Thu, Jun. 5 RKUS 4 Comments

    Summary

    • Ruckus has declined steadily from its IPO "pop", but a recent deal with Google attracts our attention.
    • Wireless data has been huge and we know many have been looking at WiFi as a potential solution.
    • Recent deals with Google and Boingo suggest RKUS is in a leadership position, it suggests our $15-16 IV is achievable if not conservative.
  • IPO Market Update
    Wed, May. 21 AGRX, FFWM, HRTG 1 Comment

    Summary

    • The current IPO schedule is positioned to clear the calendar by Memorial Day.
    • JD.com is the most important deal as it will lay a foundation for the much-anticipated Alibaba IPO.
    • Parsley is a sizable deal in the energy space that serves as the other "anchor" for the week.
  • Tepid Demand For 21st Century Oncology IPO
    Tue, May. 20 ICC Comment!

    Summary

    • 21st Century Oncology is struggling to get to their IPO.
    • Demand is limited due to high debt levels and "roll-up" growth strategy.
    • Company might need to retry with clearer financial targets.
  • Zendesk IPO Transcript
    Thu, May. 15 ZEN Comment!

    Summary

    • Zendesk saw its IPO price in the middle of the range at $9 and trade up nicely to $13.
    • We estimate 2014 revenues to be at least $132M, which puts the shares at 7x current sales.
    • Given its strong position in the market, we'd be inclined to hold this one for the long term.
  • Zulily Management 'Happy To Be Misunderstood'
    Thu, May. 8 ZU 5 Comments

    Summary

    • Zulily quarter report in-line with expectations but strategic direction a concern.
    • Comment that they are "happy to be misunderstood" is a poor message for investors.
    • High valuation combined with higher spending on items that produce little advantage pressures stock.
    • IPO share lockup expiration will add to stock supply at a bad time in the company's development.
    • Our conclusion is that ZU should be part of another company like QVC.
  • The Rubicon Project Fills Out Mini Digital Advertising Sector
    Tue, Apr. 8 RUBI 12 Comments

    Summary

    • The Rubicon Project joins an expanding group of new digital advertising companies.
    • Positioning Rubicon with Criteo and Rocket Fuel is no easy task.
    • All the companies are "priced for perfection".
  • Busy IPO Calendar Cheatsheet
    Tue, Apr. 1 RUBI, CORI, TEDU 3 Comments

    Summary

    • There are 16 deals in active marketing right now with 7 expected to price this week.
    • IMS Health (IMS) and Ally Financial (ALLY) are attracting the most institutional attention.
    • The Rubicon Project has been moved up to tonight for trading on Wednesday.
  • A Watershed Moment For Zillow?
    Wed, Feb. 12 Z 7 Comments
  • Care.com: High-Risk Potential, High-Reward IPO
    Thu, Jan. 23 CRCM 4 Comments
  • Santander Consumer USA A Hit With Institutions With Sharply Rising Dividends Likely
    Wed, Jan. 22 SC 4 Comments
  • CHC Group On The IPO Launch Pad
    Wed, Jan. 15 HELI 3 Comments
  • The Germans Are Coming To 3-D Printing With voxeljet
    Oct. 17, 2013 VJET 20 Comments
  • May 2013 IPO Market Update
    May. 19, 2013 ALDW, ATOS, CERE 5 Comments
  • Tableau Software IPO - Priced Above The Range, Headed To $50+
    May. 17, 2013 DATA Comment!
  • Fairway Market IPO Coverage
    May. 13, 2013 FWM 10 Comments
  • Xoom's Operational Worries Nix Our Enthusiasm
    Editors' Pick • Apr. 24, 2013 XOOM 15 Comments
  • March Shows Solid IPO Momentum Into April
    Apr. 9, 2013 AMBA, APAM, AVIV 1 Comment
  • Reviewing 6 Recent IPO Transactions
    Apr. 5, 2013 AVIV, ENTA, MODN Comment!
  • Xoom IPO Still Offers Long-Term Appreciation
    Feb. 20, 2013 XOOM 2 Comments
  • 2013 IPO Market Off To A Strong Start
    Feb. 6, 2013 BFAM, CVRR, DDD 2 Comments
  • IPO Market Update And Outlook
    Jan. 30, 2013 SPPP, SBY, SCTY Comment!
  • PetroLogistics Hits Another Pothole
    Dec. 19, 2012 PDH 31 Comments
  • Could Berry Plastics Be Another Aptar?
    Oct. 25, 2012 BERY Comment!