2012 IPO Outlook Cloudy After 2011 Goes Out With An Unexpected Whimper - Investo... Page 1 of 3
Streaming Quotes Are Home
Investing Business Economy Technology Management Politics Blogs Special Reports Economic Calendar IBD TV
Participate in an IBD Forum and connect with other IBD subscribers.
IPO Outlook For New Year Uncertain After Rough 2011 By AMY REEVES, INVESTOR'S BUSINESS DAILY Posted 12/23/2011 02:38 PM ET
The year's last batch of IPOs has gone out, leaving a cloudy forecast for 2012.
Featured Stocks GM
One of 2011's most anticipated new issues, online gaming firm Zynga (ZNGA), priced well Dec. 15 but quickly headed south. A passel of energy IPOs were received tepidly despite the sector's strength.
General Motors Company
GNC * G N C Holdings Inc
IMPV Imperva Inc
"What happened doesn't necessarily give confidence in companies that are wanting to go public," said Manoj George, CEO of outsourcing firm Nair & Co. and CFO of Red Hat (RHT) during its IPO. "I've talked to a couple of companies who have the fundamentals to go public, (but) * Top-Rated Company
they are looking at 2013 as opposed to 2012." The news
wasn't all bad. Demand for Michael Kors (KORS) was so Sponsored by:
strong that the fashion house jacked up its IPO size by more than 25% and still rose Dec. 14 in
Most Popular Most Viewed
its first day of trading. And while Zynga's debut was underwhelming, tiny Jive Software (JIVE) also upped its IPO size. View Enlarged Image
That suggested cloud computing is
Military Could Be Leaner But Make It Meaner… On Jobs, Put Up Or Shut Up Missing Workers Masking Job Woes
still hot, even where it's unprofitable.
Stocks Suffer Distribution, But Leaders Stay… Michelle Obama sees Barack's 'wonderful prog…
Yet overall, it was a tough year from the investor's standpoint. According to IPO research
01/15/2012 05:00:37 PM ET
house Renaissance Capital, 125 companies went public on U.S. markets vs. 154 in 2010. The average return on the IPO price was -12%. The year's top new issue is data security company Imperva (IMPV), up 81% from its Nov. 8
Investing Tip Prepare, then pull the trigger at buy points.
IPO at 18. Nutrition store chain GNC Holdings (GNC) has climbed 79% from its March 31 IPO at 16. Renaissance blames Europe's debt crisis for much of this trouble, and it's not hard to see why. The early-August market panic led to a two-month stretch of no new issues, the longest span since the bottom of the recession. The U.S. IPO market has remained at the mercy of the global economy.
2012 IPO Outlook Cloudy After 2011 Goes Out With An Unexpected Whimper - Investo... Page 2 of 3
"It's very uncertain, given how Zynga and others performed," said Lee Simmons, IPO expert with Dun & Bradstreet. "Any company considering going public in Q1 is really going to have to consider wider economic conditions before going out of the gates." But for companies who do complete IPOs, times are getting more lucrative, PricewaterhouseCoopers noted. In 2010, some 40% of all U.S. IPO proceeds came from one deal — General Motors (GM) — with the rest averaging an anemic $150 million. Excluding GM, proceeds in 2011 were up 53% to $35.4 billion. "A number of blockbuster IPOs in the last few weeks of 2011 has sparked a renewed confidence in the U.S. IPO market, which bodes well for 2012," Henri Leveque, leader of PwC's U.S. Capital Markets Services, said in a statement.
Trading Center Full Page
« « First
Avg. Rating: Email
Last » »
Trade free for 60 days + Get up to $600 with TD Ameritrade
Analyze Any Stock Free!
Free Forex Demo
Sponsored Links U.S. Trust's Year-ahead Outlook Access U.S. Trust's 2012 investment outlook to learn more about investing in the new global economy and finding opportunity among uncertainty. www.ustrust.com
Introducing Trade Architect by TD Ameritrade Trade free for 60 days on Trade Architect. Nothing to download, never a platform or subscription fee. New from TD Ameritrade! Welcome to better.
Planning for Retirement? $500,000 portfolio? Download the guide by Forbes Columnist Ken Fisher's firm. www.FisherInvestments.com
<< Previous Article in Business
$7 online trades
Next Article in Business >>
See Also • Vehicle sales slump in China01/13/2012 06:13 PM ET • Tesla Stock Crashes Friday, Revs Again After Hours01/13/2012 06:04 PM ET • Equinix, Other Data Centers Expanding As Cloud Rises01/13/2012 02:13 PM ET
Practice No Risk Trading at optionsXpress
• Several Leaders Offer Setups In Fresh Uptrend01/12/2012 06:08 PM ET
thinkorswim from TD Ameritrade: Trading technology Rated #1 by Barron's
• American Axle sees sales up01/11/2012 06:45 PM ET
More Business Articles: • France Loses AAA As S&P Downgrades Nine Euro Nations01/13/2012 05:33 PM ET
• Lessons on Buying Stocks
• Biggest Player In The Bakken Shale Expands Its Footprint01/13/2012 04:52 PM ET
• Lessons on Selling Stocks • What is CAN SLIM?
• Novartis Joins Pfizer, Merck, AstraZeneca In Layoffs01/13/2012 03:22 PM ET
• How to Invest in Options
• Google, GE, Banks Top S&P 100 Earnings Calendar01/13/2012 02:40 PM ET
• Investing Education Videos
• Turning Health Fraud To Fodder01/13/2012 02:13 PM ET
Comments No Comments Leave a comment
Leave a Comment Back to Top
To participate in Community areas, please Sign In or Register
Daily Stock Analysis
2012 IPO Outlook Cloudy After 2011 Goes Out With An Unexpected Whimper - Investo... Page 3 of 3
IBD Home Study
You Can Do It Too
Special Reports Economic Calendar
Home | About IBD | Advertising | Contact Us |
Classifieds & Partner Offers | Retail Locations | IBD Editorials | CAN SLIM Advisors © 2000-2012 Investor's Business Daily, Inc. All rights reserved. Investor's Business Daily, IBD, CAN SLIM and corresponding logos are registered trademarks of Investor’s Business Daily, Inc. Copyright and Trademark Notice | Privacy Statement | Terms and Conditions of Use © 2012 William O'Neil + Co. Incorporated. All Rights Reserved. The William O'Neil + Co. Database and all data contained herein are provided by William O'Neil + Co. Incorporated and are used by IBD under license agreement. Daily Graphs and Daily Graphs Online are trademarks of William O'Neil + Co. Incorporated or its subsidiaries. © 2012 MarketSmith, Incorporated. Charts provided by MarketSmith are used by IBD under license agreement. MarketSmith is a registered trademark of MarketSmith, Incorporated. Select market data is provided by Interactive Data Corp. Real Time Services. Price and Volume data is delayed 20 minutes unless otherwise noted, is believed accurate but is not warranted or guaranteed by Interactive Data Corp. Real Time Services and is subject to Interactive Data Corp. Real Time Services terms. All times are Eastern United States.
Investor’s Business Daily writer Amy Reeves, speakes to Manoj George on the IPO forecast for 2012 and his opinion on the environment for com...