Dallas Salazar
IPOs, contrarian, long/short equity, long-term horizon

Aspen Aerogels' IPO Should Be Treated As A Case Study For What To Avoid

Aspen Aerogels, Inc. (NYSE:ASPN) recently held an IPO on 6/13/2014 and sold 7,500,000 shares at $11.00/share, considerably lower than the targeted range of $14.00-$16.00. The company raised proceeds of $82.5 million. The shares last closed at $10.25 for an IPO to date performance of -6.8%, leaving the company with a market cap of $211 million.

This article will make the argument that ASPN is worth considerably less than where it currently trades based on the company's distance from profitability, low visibility of positive cash flow generation in the near and mid terms, and because of the certain debt and/or dilution that will soon come to shareholders and the company. The company has many other problems that the article...

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