S&P’s Valuation and Risk Strategies research group has identified six post-IPO laggard companies with a similar profile to Martha Stewart Living Omnimedia (MSO) that could follow the same path of looking for strategic investors or partners.
“The Valuation and Risk Strategies research team decided to review companies that, since their IPO, have fallen in value by more than 79% but now expect a turnaround from loss to profit between 2011 and 2012. According to Capital IQ Estimates, although the firms in our review have not expressed the intent to tap into any strategic Wall Street alternatives and have had share prices substantially below their debut price, they are forecast to return to gains after likely operating in losses this year.”
As a result, the companies may have some appeal to investors that recognize and are willing to take on the existing risks.
The companies are Eagle Bulk Shipping (NASDAQ:EGLE), optical communications component maker Opnext (NASDAQ:OPXT),window and door manufacturer PGT (NYSE:PGTI), real estate service provider Market Leader (NASDAQ:LEDR), financial information supplier EDGAR Online (NASDAQ:EDGR) and enterprise mobility service provider iPass (NASDAQ:IPAS).