Category Archives: IPO’s

Visa IPO Coming

Update: The Visa IPO begins trading under the ticker symbol V tomorrow and is expected to price between 37 – 42 tonight.

Don’t forget to sign up for the all new IPO Community above and discuss how to trade it in the forum!

visa ipoThe Visa IPO took another step towards success today after the SEC gave its restructuring plan the go ahead.  Now the company will seek approval from member financial institutions which would pave the way for an IPO early next year.  The restructuring  involves Visa International, Visa USA and Visa Canada becoming subsidiaries of a single company.  Visa Europe will remain a membership association and will become a licensee of, and own a minority interest in, Visa Inc.  

If the success of the Mastercard (MA) IPO is any indication, the IPO of Visa which is the world’s largest credit card company (they have 60% share of the market) will be tremendously successful as well.  Going public will allow the company to streamline operations, invest in new payment technologies and help insulate member banks from legal damages brought about by antitrust litigation from merchants.

The biggest beneficiaries when Visa goes public will be the dozens of banks that make up its membership, including major U.S. financial institutions like Bank of America (BAC) Wells Fargo (WFC) and JPMorgan (JPM).  They stand to reap hundreds of millions of dollars in capital gains if they sell part of their stakes.  After MasterCard (MA) completed its initial public offering, Citigroup (C) and JPMorgan (JPM) cashed out of their holdings and walked way with one-time gains worth more than $100 million.

This will no doubt be one of the biggest IPO’s in history so it will be interesting to watch it move when it does go public.


Looking for more IPO Information?  Check out the all new IPO Stocks Portal page!  Latest Opinions & News, Highest Rated IPO’s, IPO’s Moving With Volume Today, Discussion and Recommended Reading.




IPO Watchlist – SelfInvestors Top 20

Below you’ll find a screenshot of a new tracking feature implemented at in the past couple months.  It’s the IPO Tracker and it’s a dynamic, sortable watchlist of only the best IPO’s that have come to market over the past year.  You can sort by any of the columns in the live system, but the default sort is by Fundamental Rank (or F Rank), so that companies with the best fundamentals always rise to the top (in fact, this is how all of the tracking systems are set up – ie. Breakout Tracker & ETF Tracker). 

At the top you see SSRX and JASO with fundamental ranks of 28/30 which is an outstanding score.  Keep in mind that IPO’s aren’t in any particular order for a fundamental rank.  In other words all of the stocks ranked 28 are in a random order, so SSRX isn’t necessarily considered THE BEST IPO that I  track.  It’s just one of a few of the BEST IPO’s that I track – JA Solar Holdings (JASO), Limco-Piedmont (LIMC) or Wuxi Pharmatech (WX) could just as easily been listed at the very top.  One other things to note is that there may not be data for RS rank or % from 50 and 200 day moving averages because the stock doesn’t have enough of a history yet.

Looking at the table below I can quickly see that from the list of the top 20 IPO’s in this current market, both First Solar (FSLR) and DivX (DIVX) are moving with good volume today.  The % Vol Change From Avg column displays the conviction behind a move in a stock in that the greater the volume behind a move up, the greater the conviction of the move.  This data column measures the difference in current trading volume from the average trading volume at this point in the trading day. 

The DI15 and DI30 columns are proprietary indicators of and they measure the amount of demand behind a stock using price and volume data over 15 and 30 days.  Of course, the higher the score, the  greater the momentum the stock is showing.  In the table below you see that VMWare (VMW) has shown the greatest momentum of them all, followed by WuXi Pharmatech (WX) and Limco-Piedmont (LIMC).  Heely’s (HLYS) and Big Band Networks (BBND) have been showing the least demand as indicated by highly negative DI30 scores.

Get a full view of the IPO Tracker by clicking the image below. 

Facebook IPO / Buyout Frenzy Builds

facebook ipoFirst there was the declined 1 billion dollar buyout offer from Yahoo and rumored 2 billion offer from Google.
Then the move to open Facebook to everyone (not just those with an .edu address),
According to AdRants, traffic has nearly doubled since opening it up to the masses and those over the age of 34 make up 40% of it’s user base.  
Most recently, a job posting on Facebook for a Stock Administration Manager:
Facebook is seeking an experienced Stock Administration Manager to join the Finance team. This is a full time position located in our Downtown Palo Alto office and will report to the Controller.

Responsibilities include (in part):
·        Manage the administration and compliance of all employee equity compensation programs such as Stock options, Restricted stock, RSUs, Warrants
·        Strong knowledge of SEC, FASB, and IRS rules and regulations relating to stock plans and insider trading (including SEC Section 16, SEC Rules 144, 145 and 701, FASB 123R, and IRC Sections 83, 409A, 421, 422 and 423)

Does it all add up to an  IPO filing?  The indications are there but the buyout rumors with Microsoft (who they currently have an agreement with) appear to be just as strong.  Now whether the company will IPO or agree to be bought out by Microsoft as recent rumors suggest, they will have to find a better way to generate income from its user base.   ValleyWag has been covering the ad issues with Facebook, which has struggled with low quality advertising and low click through rates.

Ashkan Karbasfrooshan outlines the current agreement with Microsoft and makes the case for a Facebook IPO in 2008 in great detail.  Great post Ashkan!

My personal feeling is that Facebook would NEVER sell out to Microsoft and risk pissing off it employees and user base but we shall see.

IPO Watch List: Top 9 IPO’s to Consider Right Now

The following IPO’s combine both superior fundamentals and bullish trading action and are in a buyable range or close to it.  Many recent IPO’s are often off the radar of Wall St and the general public (with the exception of a few high profile ones such as Blackstone (BX) and Interactive Brokers (IBKR)), which can sometimes lead to explosive profits.  What I look for is a breakout  from the first area of consolidation or base to initiate an initial position.  Keep in mind that a few of the IPO’s below (such as FCSX) have already broken out but may pull back to a buyable range (near the breakout or pivot point).

FC Stone Group FCSX IPO chart

FCStone Group, Inc. (FCStone) is an integrated commodity risk management company providing risk management consulting and transaction execution services to commercial commodity intermediaries, end-users and producers. It assists primarily middle market customers. In addition, to its risk management consulting services, FCStone operates an independent clearing and execution platforms for exchange-traded futures and options contracts.  FCStone operates in four segments: commodity and risk management services (C&RM), clearing and execution services, financial services and grain merchandising.

The stock broke out in the middle of June with good volume and is in the process of returning to that point and may provide another opportunity to initiate a position.


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InnerWorkings INWK IPO chart

InnerWorkings, Inc. is a provider of print procurement solutions to corporate clients in the United States. The Company creates bid process to procure, purchase and deliver printed products as part of an outsourced enterprise solution and in individual transactions. Its applications and database, PPM4, creates an integrated solution that stores, analyzes and tracks the production capabilities of its supplier network, as well as quote and price data for each bid the Company receives and print job it executes. Through its network of over 5,000 suppliers, the Company offers a range of print, fulfillment and logistics services. InnerWorkings, Inc. procures printed products for clients across a range of industries, such as advertising, consumer products, publishing and retail.

The stock broke out of a fairly sloppy double bottom base in early June and is now digesting gains after a more than 30% run in just a few weeks.  I’d want to see it spend a few more weeks consolidating and/or drop to around 15 to initiate a position. 

Empresa Distribuidora EDN ipo chart

Empresa Distribuidora y Comercializadora Norte S.A. (Edenor) is the largest electricity distribution company in Argentina in terms of number of customers and electricity sold (both in GWh and Pesos).  Through a concession, Edenor distributes electricity exclusively to the northwestern zone of the greater Buenos Aires metropolitan area and the northern part of the city of Buenos Aires, which has a population of approximately 7 million people and an area of 4,637 sq. km.

The stock broke out of a short flat base before taking off to a nearly 20% gain.  It’s now in the process of retracing that move and may offer a good reentry point.  I’m looking for an entry in the 18.75 – 19.75 area.  I think this one has the potential for tremendous gains over the next few years.

eTelecare Global Solutions ETEL ipo chart

eTelecare Global Solutions, Inc. (Telecare) is a provider of business process outsourcing (BPO) services focusing on the voice-based segment of customer care services delivered from both onshore and offshore locations. eTelecare provides a range of services, including technical support, financial advisory services, warranty support, customer service, sales, customer retention, and marketing surveys and research. Its services are delivered from four delivery centers in the Philippines and seven delivery centers in the United States.

Fairly simple here.. I’m just looking for a breakout from this base above 17 with some volume behind it.

Warner Chilcott WCRX ipo chart

Warner Chilcott Limited (Warner Chilcott) is a specialty pharmaceutical company focused on segments of the United States pharmaceutical market, womenGÇÖs healthcare and dermatology.

The stock first broke out at the beginning of April, which offered an initial opportunity to get in.  Since then, it’s been trending nicely along the 50 day moving average and recently broke out of short consolidation.  I think it offers a good entry here, but the closer to the 50 day moving average, the better.

Opnext OPXT ipo chart

Opnext, Inc. is a designer and manufacturer of optical modules and components, which enable high-speed telecommunications and data communications networks globally.

After a long downtrend, the stock is beginning to turn the corner with a recent surge above resistance of the downward trend and the 50 day moving average.  I’m looking for an entry on a high volume break from this short consolidation area.

Mellanox Technologies MLNX ipo chart

Mellanox Technologies, Ltd. is a supplier of semiconductor-based interconnect products that facilitate data transmission between servers, communications infrastructure equipment and storage systems. The Company’s products is a part of a total solution focused on computing, storage and communication applications used in enterprise data centers, computing and embedded systems.

The stock is working on a big cup base (albeit a bit of steep one) and is carving out a handle formation.  I’m looking for a breakout from this consolidation with volume as an opportunity to initiate a position.

Thermage THRM ipo chart

Thermage, Inc. designs, develops, manufactures and markets medical devices for the non-invasive treatment of wrinkles. The Company’s Thermage procedure can be performed on any part of the body where treatment of wrinkles is desired. Its ThermaCool system uses monopolar radiofrequency (RF) energy to heat and shrink collagen and tighten dermis and subcutaneous tissue while simultaneously cooling and protecting the surface of the skin. The heating and shrinking of the collagen can cause a healing process to begin, which may further tighten the skin and reduce wrinkles over the next 2 to 6 months. The Thermage procedure is normally performed in a medical office setting as a single treatment that takes from 20 minutes to 2 hours, depending on the treatment area.

I’ve written before about how stocks offer multiple entry points and THRM illustrates this well.  A break from the first consolidation above the 50 day moving average is entry point 1.  A break above the middle peak of what could be described as a lopsided double bottom would provide a 2nd entry and of course a break to a new all time high would indicate entry 3.  A fast growing company in a hot industry.. certainly one to watch closely.

Aecom Technology ACM ipo chart

AECOM Technology Corporation (AECOM) is a global provider of professional technical and management support services to government and commercial clients on all seven continents. AECOM provides planning, consulting, architectural and engineering design, and program and construction management services for a range of projects, including highways, airports, bridges, mass transit systems, government and commercial buildings and water and wastewater facilities.

The stock broke from a short consolidation in June and is retracing that move.  I’m looking for a retest of what is shaping up as short term support around 23.50 as an opportunity to initiate a small position.


Disclaimer: I currently own a position in FC Stone Group (FCSX)

IPO Lockup Dates (June 5 – 8)

The IPO lockup period is a legally binding contract between the underwriters and the company undergoing the initial public offering that probits company insiders from selling their shares.  The expiration of the lockup period can be very important because it can result in downward pressure share price as insiders cash out a portion of or all of their position.

The following is a list of companies with expiring IPO lockup periods for the coming week:

Note: An * indicates those tracked by SelfInvestors in the new IPO Tracker database.. a database of only the best IPO’s coming to market.

6/5/2007: Aegean Marine Petroleum Network (ANW) *, Allegiant Travel Company (ALGT) *, Heely’s (HLYS) *

6/6/2007: Sourcefire (FIRE) *

6/8/2007: Fortress Investment Group (FIG) *

IPO Lockup Dates (May 13 – 19)

The IPO lockup period is a legally binding contract between the underwriters and the company undergoing the initial public offering that probits company insiders from selling their shares.  The expiration of the lockup period can be very important because it can result in downward pressure share price as insiders cash out a portion of or all of their position.

The following is a list of companies with expiring IPO lockup periods for the coming week:

Note: An * indicates those tracked by SelfInvestors in the new IPO Tracker database.. a database of only the best IPO’s coming to market

5/14/2007: Allot Communications (ALLT) *, Hansen Medical (HNSN), Hertz Global (HTZ)

5/15/2007: First Solar (FSLR) *, Nymex  (NMX) *, Venoco (VQ)

5/19/2007: AerCap Holdings (AER) *, Spirit AeroSystems (SPR) *, Willdan Group (WLDN)

IPO Lockup Dates (May 6 – 12)

The IPO lockup period is a legally binding contract between the underwriters and the company undergoing the initial public offering that probits company insiders from selling their shares.  The expiration of the lockup period can be very important because it can result in a declining share price as insiders cash out a portion of or all of their position.

The following is a list of companies with expiring IPO lockup periods for the coming week:

5/6/2007: Catalyst Pharmaceutical Partners (CPRX)

5/7/2007: Canadian Solar (CSIQ), KBW (KBW), OneBeacon Insurance (OB), Physicians Formula (FACE)

5/8/2007: ACA Capital (ACA), Capella Education Company (CPLA), Metabolix (MBLX), Thermage (THRM)

Big Demand for Interactive Brokers (IBKR) IPO

If the percentage of my traffic that comes from Google searches involving Interactive Brokers is any indication, Investors are clearly clamoring for shares of the Interactive Brokers (IBKR) IPO ahead of public trading this Friday.  Also, just today, underwriters have increased the size of the offering from 20 million shares to 34.5 million while increasing the expected pricing range from $23 – 27 to $27 – 31.  The company is giving Wall St the could shoulder and going Dutch just as Google (GOOG) did a couple years ago with the open auction using the services of WR Hambrecht (OpenIPO).  It levels the playing field between institutional and retail investors giving everyone a chance at a piece of the IPO pie.  From the WR Hambrecht website:

"The OpenIPO® auction, for example, levels the playing field in initial public offerings, allowing individuals and institutional investors to bid online for shares of an IPO. All investors end up paying the same price – a price determined by the auction. The OpenBook® auction for corporate bonds, is an online system that offers transparent, real-time price discovery. OpenFollowOn® auction extends the transparency and real-time price discovery of the OpenBook auction to follow-on equity offerings allowing interactive bidding and gives investors a view into the book as it builds.

I’ll be sitting this one out, but if you’re interested in bidding, Interactive Broker (IBKR) customers can do it easily from their account page or you can go through other participants.  Trader Narrative recently wrote up a nice summary about how the process works.

In my opinion, these shares are going to get priced way above a reasonable valuation due to it’s popularity.  That doesn’t mean it can’t spike significantly higher still after hitting the open the market, but I just prefer to wait a few days for the dust to settle.  At any rate, it will be an interesting to watch to for the rest of the year.  For an interesting post on coming up with a valuation for Interactive Brokers (IBKR) have a look at Frank’s post over at

Catching Hot IPO’s Out of the Chute

The hottest IPOs often run up significantly before ever forming a real base, trending higher and higher right out of the gates in a stair step pattern.  This likelihood only increases in a bull market when their is great enthusiasm for the next hot stock.   So what kind of pattern am I looking for in these situations?  Basically, what I’m looking for is a run up, a retrace/consolidation, then a break.  It may look a lot like a bullish pennant or flag formation as we’ll see in the chart of recent IPO Mindray Medical International (MR) below.

DIVX, a recent purchase in the SelfInvestors Model Portfolio provides a good example of this kind of move.  The stock spent a few days running up with good volume, retraced much of that move as sell volume dries up, then breaks out of that consolidation with a pick up in buy volume.  One thing to keep in mind with this pattern: make sure the volume is there during buying and dries up during the selling (the volume bars should look like the right side of a bell curve).

Mindray Medical (MR) is another recent hot IPO that has formed what looks more like a bullish pennant pattern which is outlined in red.  You see the retracement happens much sooner (immediately following the IPO) and slides into its first consolidation.  On October 11th, the stock broke out of this consolidation but I would have held off on a purchase at this point because the volume wasn’t there.  Volume did pick up the very next day and it could have been purchased here, but being patient has provided a much better opportunity right here right now.