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  • New Kids (Offerings) On The Block But Without The Hit Single
     IPOs are great for either shorting or loading the boat depending on the pricing and the pitch. How do you know which to do? That is what we asked for years when we started investing in the markets and soon grew to understand and know. That is why you come to us right, to get the facts to help provide you the profitable tools to make educated decisions. While we wish we could boast a sure thing but that is about as possible as the Dow Jones hitting 20,000 in 2010 that is why we too evaluate the research available and then trust our gut to swing us in the right direction.

    Through our friends on Seeking Alpha here are 7 IPOs to look for this week with the key points:

    Ambow Education Holding (NYSE:AMBO), which provides education, test prep and IT career training services in China, plans to raise $117 million by offering 10,677,210 at a price range of $10.00 to $12.00. At the mid-point of the proposed range, Ambow Education Holding will command a market value of $844.24 million. Ambow Education Holding, which was founded in 2000, booked $146 million in sales over the last 12 months. The Beijing, China-based company plans to list on the NYSE under the symbol AMBO. J.P. Morgan (NYSE:JPM), Goldman Sachs (Asia) L.L.C. (NYSE:GS) are the lead underwriters on the deal.

    D. Medical (DMED), a medical device company that develops and manufactures insulin pumps, plans to raise $30 million by offering 2,727,273 at a price range of $10.00 to $12.00. At the mid-point of the proposed range, D. Medical will command a market value of $98.33 million. D. Medical, which was founded in 1992, booked $0 million in sales over the last 12 months. The Ramat Gan, Israel-based company plans to list on the NASDAQ under the symbol DMED. Rodman & Renshaw (RODM), ThinkEquity are the lead underwriters on the deal.

    Gordmans Stores (NASDAQ:GMAN), an everyday low price fashion retailer operating 68 stores in the Midwest, plans to raise $75 million by offering 5,357,143 at a price range of $13.00 to $15.00. At the mid-point of the proposed range, Gordmans Stores will command a market value of $261.84 million. Gordmans Stores, which was founded in 1915, booked $458 million in sales over the last 12 months. The Omaha, NE-based company plans to list on the NASDAQ under the symbol GMAN. Piper Jaffray (NYSE:PJC), Wells Fargo Securities (NYSE:WFC) are the lead underwriters on the deal.

    IntraLinks Holdings (NYSE:IL), which provides secure online document management to over 4,300 customers, plans to raise $165 million by offering 11,000,000 at a price range of $14.00 to $16.00. At the mid-point of the proposed range, IntraLinks Holdings will command a market value of $766.70 million. IntraLinks Holdings, which was founded in 1996, booked $141 million in sales over the last 12 months. The New York, NY-based company plans to list on the NYSE under the symbol IL. Morgan Stanley (NYSE:MS), Deutsche Bank Securities (NYSE:DB), and Credit Suisse (NYSE:CS) are the lead underwriters on the deal.

    NuPathe (PATH), a specialty pharma seeking approval for Zelrix, a patch for migraine treatment, plans to raise $75 million by offering 5,000,000 at a price range of $14.00 to $16.00. At the mid-point of the proposed range, NuPathe will command a market value of $211.68 million. NuPathe, which was founded in 2005, booked $0 million in sales over the last 12 months. The Conshohocken, PA-based company plans to list on the NASDAQ under the symbol PATH. Leerink Swann, Lazard Capital Markets (NYSE:LAZ) are the lead underwriters on the deal.

    NXP Semiconductors (NASDAQ:NXPI), a diversified global semiconductor company and former carve-out of Philips, plans to raise $663 million by offering 34,000,000 at a price range of $18.00 to $21.00. At the mid-point of the proposed range, NXP Semiconductors will command a market value of $4,860.40 million. NXP Semiconductors, which was founded in 1953, booked $3,843 million in sales over the last 12 months. The Eindhoven, Netherlands-based company plans to list on the NASDAQ under the symbol NXPI. Credit Suisse, Goldman, Sachs & Co., and Morgan Stanley are the lead underwriters on the deal. Please note: *Filed with SEC under KASLION Acquisition B.V.

    SurgiVision (SRGV), which has developed an MRI-guided device for minimally invasive brain procedures, plans to raise $25 million by offering 2,500,000 at a price range of $13.00 to $15.00. At the mid-point of the proposed range, SurgiVision will command a market value of $111.01 million. SurgiVision, which was founded in 1998, booked $3 million in sales over the last 12 months. The Memphis, TN-based company plans to list on the NASDAQ under the symbol SRGV. Canaccord Genuity (OTC:CCDPF), Rodman & Renshaw are the lead underwriters on the deal. Please note: *Lowered range to $9-$11 (was $13-$15) [Update: IPO is now postponed.]

    Trius Therapeutics (TSRX), which is developing an antibiotic for serious gram-positive Staph infections, plans to raise $78 million by offering 6,000,000 at a price range of $12.00 to $14.00. At the mid-point of the proposed range, Trius Therapeutics will command a market value of $216.82 million. Trius Therapeutics, which was founded in 2004, booked $5 million in sales over the last 12 months. The San Diego, CA-based company plans to list on the NASDAQ under the symbol TSRX. Citi (NYSE:C), Piper Jaffray, and Canaccord Genuity are the lead underwriters on the deal. Please note: *Previously postponed on 3/1/2010 due to modification of its Ph. 3 trials, refiled amendment on 6/16/2010.

    Last week, there were 3 IPO pricings. Envestnet (NYSE:ENV), which provides outsourced web-based investment solutions to financial advisors, was the week’s winner, ending up 12% from its IPO price.

    As always we will post our latest stock, IPO information and links on Twitter and will provide our weekly commentary through newsletter so don’t wait to sign up and join over 19k satisfied readers while it still FREE.

    Aug 04 9:51 AM | Link | Comment!
  • Cut The Guesswork Here Are The Best Energy Stocks Of 2010
     Our favorite stocks to obsess over are energy stocks.  Here is a solid list for you to do some research on.  Read over the due diligence and click on the links to read more about these stocks.

    Study after study has shown that stocks with low price-to-earnings multiples significantly outperform high P/E stocks. Research from my favorite investing guru, NYU professor Aswath Damodaran, pegged the outperformance at anywhere from 9% to 12% per year, depending on the study period. That's big money we're talking about.

    You might be thinking wait a minute... but hold on;

    There are 234 energy companies with market caps topping $500 million on major U.S. exchanges. They have an average forward P/E of 26.9. Here are my parameters:

    1. In order to stay away from bankruptcy risk, I used Damodaran's suggestion, and only considered companies with total debt less than 60% of capital.
    2. In hopes of capturing a reasonable amount of growth, I looked at Capital IQ's long-term estimates, and kept only companies expected to grow EPS at 5% annually or better over the next five years. Furthermore, I required at least 5% annualized growth over the past five years.

    Expect to see more coverage and research posted to our site in the coming weeks as well as updated videos about market topics that can be viewed on our investment channel. Find out more information about oil stocks and the supporting research.

    Of the 44 companies passing the screen, here are the 15 with the lowest forward price-to-earnings multiples:

    CompanyMarket Cap (in millions)Forward P/EDebt-to-CapitalEstimated EPS
    Growth
    Transocean (NYSE: RIG)$14,7846.135%16%
    Atwood Oceanics(NYSE:ATW)$1,7526.517%10%
    Alliance Resource Partners
    (Nasdaq: ARLP)
    $1,9187.953%10%
    Noble (NYSE: NE)$8,3157.99%16%
    Chevron (NYSE: CVX)$153,0798.010%14%
    Diamond Offshore Drilling
    (NYSE: DO)
    $8,2718.329%21%
    Rowan Companies(NYSE:RDC)$2,89010.121%18%
    Bristow Group(NYSE: BRS)$1,20110.435%6%
    Hess (NYSE: HES)$17,59611.223%9%
    Murphy Oil (NYSE: MUR)$10,48411.614%14%
    Ensco (NYSE: ESV)$5,97911.64%7%
    Newfield Exploration(NYSE:NFX)$7,14311.741%7%
    TETRA Technologies(NYSE:TTI)$78912.135%16%
    World Fuel Services(NYSE:INT)$1,54712.32%10%
    Southern Union(NYSE: SUG)$2,80912.359%10%
    Oil Stocks You Should be Considering For 2nd Half: Don’t Miss The Next Rally!
    Tags: ATW, BRS, CVX, DO, ESV, MUR, NE, NFX, RDC, RIG, SUG, TTI
    Aug 04 9:24 AM | Link | Comment!
  • This Ship Is Sailing Are You On It?
     Long been fans of trading in dry ship companies such as SHIP and DRYS we want to bring to our subscribers attention GNK.  

    A scan for due diligence revealed the following information: 

    I’ve seen that the market is quite short-sighted and will often bid a stock to lofty levels based on one or two good years. Based on the current situation, I believe that a company earning over $4 TTM and still making major moves to grow should not be valued under $20. Its stock is mispriced in the short-term, likely caused by the 35 day slump in the BDI. 

    Longer term, an eventual recovery should see GNK exceeding the $4.73 EPS from 2009, especially with 30% more tonnage capacity in the future. If GNK can pull off $5 in full year earnings in 2012 or 2013 and the market assigns a multiple of only 7, that’s more than a double from current levels. Assigning a multiple of 7 to TTM earnings of $4.48 gives us a value of $31.36 per share. 

    Three to five years from now, I expect a better economy than we have right now. I expect EPS to exceed $5 at that time. If people are more bullish then, a P/E multiple of 10 would see a price of $50 for GNK. That’s not unfathomable considering the high of $84.51 in May 2008 (more than 29 times 2008 earnings). I know that was during the commodity boom, but I’m only asking for a multiple of 10 instead of 29, which I believe is quite reasonable. A multiple of 12-15 is still not unthinkable and would put it in line for considerably more than a triple from the current level.

    I believe GNK is both a solid short-term and long-term play. Both profitable and unprofitable drybulk shippers have been slammed with the recent slump in the BDI. I expect a short-term bounce of 20% to 50% and a possible triple or more within 5 years. Management has done a good job with fleet utilization, achieving almost 100% as of Q1 2010. The growth is quite aggressive, but I believe the acquisitions will contribute nicely to future earnings as long as the debt level is contained.

    Suffice to say we believe this might not only be a long time play but also a solid short term one.  Keep tabs on our investment highlights on Twitter and look for new stock commentary on our internet channel.  For more information about GNK click this link. 

    Tags: OQ, DRYS, SHIP
    Aug 03 1:16 AM | Link | 1 Comment
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