By Todd H., Trading Website Manager and Blog Contributor
There is no shortage of companies trying to go public and enter the market before year-end. This week alone 11 IPOs (initial public offerings) were issued:
· Bonanza Creek Energy Inc. (BCEI)
· FusionStorm Global, Inc. (FSTM)
· Gazit-Globe (GZT)
· GSE Holdings Inc. (GSE)
· Inergy Midstream LP (NRGM)
· Jive (JIVE)
· Laredo Petroleum Holdings Inc. (LPI)
· Michael Kors Holdings Ltd. (KORS)
· Mid-Con Energy Partners LP (MCEP)
· Sanchez Energy Corporation (SN)
· Zynga Inc. (ZNGA)
Last year, 20 companies issued IPOs in December. With the close of this week, December 2011 has recorded 16 IPOs altogether and more are scheduled to be issued in the remaining nine trading days of the year.
These stocks represent a variety of sectors and range in price from $8 a share to more than $20. Over the past 10 years (2002 to 2011), the fourth quarter has averaged 42 IPO filings, presenting investors with a continual flow of new opportunities.
What’s an investor to do?
Every investor has a method for evaluating opportunities. And as an independent investor with Scottrade, each client has the freedom to decide for themselves the criteria they will use to determine if an individual stock belongs in their portfolio. So, how can you spot, research and monitor these – and future – IPOs?
Spot
To see what’s coming up in the markets, Scottrade’s Market Calendar presents a clear view of a month, week or single trading day’s expected activity. This includes IPOs and SPOs (secondary public offerings), earnings reports, dividends, splits and economics. This section is designed to help our clients quickly identify upcoming events and be able to plan and make informed investment decisions.
Research
Timely financial news provides a pulse on world events and the market effects. Every Scottrade account provides this go-to source for research through Today’s Market News. By typing in any search term – company name, ticker symbol, buzz word or person’s name – a complete list of related market stories is at your disposal.
Just want to see what’s hot? Next to the search bar in Market News is a list of ticker symbols recently mentioned in the news.
Monitor
Once you have identified a security or upcoming IPO you want to monitor, Scottrade’s customizable Watch Lists allow you to easily compare each investment. Because we understand that every investor has their own process to evaluate current and potential investments, the Watch Lists table has a built in edit feature enabling each client to choose from 20 data columns and customize the order they appear. The 20 data columns include everything from 52-week high to entry price.
What’s your method for evaluating new investments?
For more on this and other account features visit the Knowledge Center.
Hi Dan,
I contacted Bekah, one of our brokers to help answer your question. Here is what she had to say.
It can be difficult to evaluate IPO's, since they are not required to release information until they go public, however, you can read and research the company directly on their website, in the Investor Relations section. For more information on IPO's and how they work, go to our Knowledge Center and type 'IPO' in the search field. You'll find lots of KnowHow News and investment education to help you. Call us with questions at 800-619-7283.
Best,
Amber T.
Social Media Marketing Supervisor, Scottrade
What is the best method for evaluating a company with a scheduled IPO? Since financials are not disclosed until public filings are done, how is the avergae investor to know what a fair price to pay for the stock would be once the company is public?