May
08
2008
Colfax (CFX) & Real Goods Solar (RSOL) IPOs Begin Trading
Subscribe in a readerThe number of decent IPO's coming to market is picking up to a slow trickle and today two IPO's worth watching began trading - Colfax (CFX), a global supplier of pumps for the water and oil industry & Real Goods Solar (RSOL), one of the largest installers of solar energy systems.
Colfax (CFX) began its life as a public company with a bang opening up at 24/share but finishing the day 3 bucks lower at 21/share. Still well ahead of the 18/share initial price which raised the company 338 million.
According to Google Finance, the company is a global supplier of a range of fluid handling products, including pumps, fluid handling systems and specialty valves. The Company is a manufacturer of rotary positive displacement pumps, which include screw pumps, gear pumps and progressive cavity pumps. Its products serve a variety of applications in five markets: commercial marine, oil and gas, power generation, global navy and general industrial. The Company’s are marketed principally under the Allweiler, Fairmount, Houttuin, Imo, LSC, Portland Valve, Tushaco, Warren and Zenith brand names. Colfax Corporation’s customer base includes commercial, industrial, marine and governmental customers, such as Alfa Laval, Cummins, General Dynamics, Hyundai Heavy Industries, Siemens, Solar Turbines, Thyssenkrupp, the United States Navy and various sovereign navies around the world. In January 2007, the Company acquired Lubrication Systems Company. In November 2007, it acquired Fairmount Automation, Inc.
The financials appear to be strong and the company said that 2007 net income rose to $64.9 million on revenue of $506 million from net income of $94,000 on revenue of $394 million in 2006, but it's difficult to say how much of that is through acquisitions rather than organic growth. I have not poured over the numbers in Colfax but will let it trade it for a couple weeks as I do with all IPO's then take a closer look at the financials and technicals.
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It was not such a good day for Real Goods Solar (RSOL) as the stock finished considerably lower than the $10 that it initially priced at with much of the proceeds going to parent company Gaiam. As I mentioned in a previous post, Real Goods Solar is a subsidiary of Gaiam (GAIA), the environmentally friendly lifestyle products retailer.
From the website of Real Goods:
Real Goods has led the Sustainable Living market through sales, education and installation of solar and other renewable energy products. As the original and most experienced solar installer, we are ideally positioned to install solar on your home or business. In fact, there has never been a better time to go solar! Rebates and tax incentives like those in Colorado and California have made solar power systems more affordable than ever.
The decision to go solar is the first step. Now you must choose an experienced, reliable partner to walk you through the process—from design to installation to rebate paperwork—we’re with you every step of the way.
- We sold the very first solar panel in the US in 1978 and expect to be here for many decades to come.
- Real Goods has installed 2500 homes (and counting) with unparalleled and caring customer service.
- Instant rebate –no paperwork and waiting for reimbursement.
- 20+ years construction experience.
The company says it's installed more residential energy systems in the US than any other company, including competitor Akeena Solar (AKNS) which reported awful results this morning. Akeena said losses soared to 4.6 million, despite revenues nearly doubling. Real Goods has been turning some profits and appears to be the better play in the residential solar installation field.
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