Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

High-Tech IPOs Are Fueling the Nasdaq Stock Market Rally

Companies / Tech Stocks Apr 02, 2012 - 07:32 AM GMT

By: Money_Morning

Companies

Best Financial Markets Analysis ArticleMichael Robinson writes: Don't look now but big paydays are here again in the tech-heavy Nasdaq.

From the depths of the 2009 bottom, the Nasdaq is up 139%, hitting levels it hasn't seen in more than 10 years.

In the last three months alone, the bellwether index is up nearly 19% -- outpacing the 12% gain in the S&P 500.


But here's the thing: It's not all about Apple.

The high-tech IPO market is practically on fire. One of them is Jive Software (NASDAQ: JIVE).

Since Jive debuted last December, shares have jumped 25% from the offering price on the first day.

Since then, the stock has done nothing but power ahead. At the close of trading Thursday, Jive had nearly doubled in less than four months!

Hot High-Tech IPOs are a Major Market Trend
But that is just the beginning. Successful new issues like Jive reflect major trends reshaping markets.

Jive creates tools that help businesses run social networks, clearly an important way for many firms to reach new clients.

Jive is hardly alone. Several high-tech IPOs are showing excellent returns in the market's strong rally.

In fact, this actually is the best overall period for tech stocks since the "dotcom" crash 12 years ago.

Aside from Jive, several other IPOs have turned in double-digit gains in the last several months helping to lead the overall market higher - especially the Nasdaq.

Of course, the Nasdaq still needs another 40% surge to match pre-bubble values. But that's not the point.

Investors need to remember that every bull market contains leaders that have new products in new fields.

That is what always lands solid high-tech IPOs in the winner's circle.

The good news for investors is that they can expect to find more new issues in the weeks ahead.

PricewaterhouseCoopers LLP said in a recent report that 274 firms filed registrations in 2011, the largest number in several years. Of those, about 160 remain in the IPO pipeline.

Now don't get me wrong. I'm not suggesting you throw a dart at the IPO board. Far from it.

You still have to remain a disciplined, focused investor.

Just think if you'd tied up a lot of funds in BATS Global Markets. The tech-focused exchange had to withdraw its IPO last week because of a software glitch.

Of course, that kind of mistake isn't just stupid. It's inexcusable. But let's not focus on the negative.

There are just too many winners to look at.

5 Hot High-Tech IPOs
Take the case of GuidewireSoftware Inc. (NASDAQ: GWRE). So far it's at the head of the class for 2012 IPOs.

Guidewire has a very simple model. It sells software to the property and casualty insurance sector. Guideware boasts that its products can replace aging systems for some 80 clients who can tailor the software for their exact needs.

The firm priced more than 8.8 million shares at $13.00 in January. Since then, Guidewire has nearly doubled.

For its part, ExactTarget Inc. (NYSE: ET) hit the bull's eye too. Tech investors may recall that the interactive marketing firm with some 4,500 clients cancelled its IPO during 2009's market meltdown.

This time around, the stock caused a buying panic. Originally priced at $15 to $17, the stock had an offering price of $19 on March 22.

When it finally hit The Street, buyers pounced.

In the first half hour of trading, the stock hit $25, up 31%. After that, there was some back and forth, but the stock closed at $25.50.

On the other hand, Zynga Inc. (NASDAQ: ZNGA) reveals why I said you must remain a disciplined investor...

It is essential that you at least follow this basic rule: never put in an order to buy IPO shares at the market.

That can mean quick losses. Many shares will open strongly only to close below the offering price. That means you need to put in a sensible limit order.

And stick to it -- even if that means letting the IPO slip away.

After all, on paper, Zynga sounded like a winner.
The firm makes games used by millions of fans on Facebook, the wildly popular social Website.

Instead, Zynga had a lousy debut. It opened on Dec. 16 at $11.00 a share. At the close of the first day's trading, Zynga had racked up losses of 13%.

Since then, however, shares have recovered. Zynga recently traded around $13, banking gains of 18%.

As recent IPOs go, that's hardly setting the world on fire. Compare Zynga to InvenSense (NASDAQ: INVN).

The maker of motion-sensing integrated circuits had its IPO last November with an offering price of $7.50. It opened that day at $8.60 and closed up about 7% for the day.

Since then, shares have gone on a tear, recently trading in the $21 range. That gives it an "official" gain of 200%. However, from the opening price, the stock has gained about 150%.

And then there's Ubiquiti Networks (NASDAQ: UBNT), which makes wireless networking products. It opened last October at $16.50 a share and closed up 6% for the day.

Now, it's giving InvenSense a run for the money. Ubiquiti trades at around $32 a share, meaning the stock has nearly doubled in just five months.

These are just a few of the stories helping to fuel the monster rally in the Nasdaq.

It's the beginning of a major trend that will reward patient investors for years to come.

The question today's investors face is how to find the next Guidewire of Ubiquiti so you can cash in on these big gains.

That's why I've created the Era of Radical Change, a unique advisory service that will show you how to profit from the most important trends reshaping the world around us.

I'm talking about:

•The sheet of flexible plastic that allows you to fold your e-reader screen like a newspaper.
•The small robot that can jump over walls to conduct surveillance for U.S. troops.
•The nanosatellite that can fly to the moon on a single drop of fuel.
•And much, much more...

So, if you want to find a way to profit from the next generation of tech breakthroughs, please join me at the Era of Radical Change.

It's free and it debuts soon. So stay tuned.

Source :http://moneymorning.com/2012/04/02/these-high-tech-ipos-are-fueling-the-nasdaq-rally/

Money Morning/The Money Map Report

©2012 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in