Best of the Week
Most Popular
1.Are UK Savings Interest Rates Finally Starting to Rise? Best Cash ISA 2017 - Nadeem_Walayat
2.Inflation Tsunami - Supermarkets, Retail Sector Crisis 2017, EU Suicide and Burning Stocks - Nadeem_Walayat
3.Big Moves in the World Stock Markets - Big Bases - Rambus_Chartology
4.The Next Financial Implosion Is Not Going To Be About The Banks! - Gordon_T_Long
5.Why EU BrExit Single Market Access Hard line is European Union Committing Suicide - Nadeem_Walayat
6.Trump Ramps Up US Military Debt Spending In Preparations for China War - Nadeem_Walayat
7.Watch What Happens When Silver Price Hits $26...  - MoneyMetals
8.Stock Market Fake Risk, Fake Return? Market Crash? - 2nd Mar 17 - Axel_Merk
9.Global Inflation Surges, Central Banks Losing Control and Triggered the Wage Price Spiral? - Nadeem_Walayat
10.Why Gold Will Boom In 2017 - James Burgess
Last 7 days
USD Gold Myriad of Signs - 28th Mar 17
Ominous Social Trends That Will Shape Our Future - 28th Mar 17
Foundation And Empire: Is Donald Trump The Mule? - 28th Mar 17
Top Ten US Dollar Risks - 27th Mar 17
The Popularity of Gambling and Investing Amongst Students - 27th Mar 17
Is Political Betting on the Rise? - 27th Mar 17
US Stock Market Consolidation Time - 27th Mar 17
Russia Crisis - Maps That Signal Growing Instability and Unrest - 27th Mar 17
Goldman Sachs Backing A Copper Boom In 2017 - 27th Mar 17
Foundation – Fall Of The American Galactic Empire - 27th Mar 17
Stock Market More Correction Ahead - 27th Mar 17
US Dollar Inflection Point - 27th Mar 17
Political Week Presurres US Stock Market - 25th Mar 17
London Terror Attack Red Herring, Real Issue is Age of Reason vs Religion - 25th Mar 17
Will Washington Risk WW3 to Block an Emerging EU-Russia Superstate - 25th Mar 17
Unaccountable Military Industrial Complex Is Destroying America and the Rest Of The World Too - 25th Mar 17
Silver Mining Stock Fundamentals - 24th Mar 17
A Walk Down the Dark Road of Bad Government - 24th Mar 17
Is Stock Market Flash Crash Postponed Until Monday? - 24th Mar 17
Stock Market Bubble and Gold - 24th Mar 17
Maps Of Past Empires That Can Tell Us About The Future - 24th Mar 17
SNP Independent Scotland's Destiny With Economic Catastrophe, the English Subsidy - IndyRef2 - 24th Mar 17
Stock Market VIX Cycles Set To Explode March/April 2017 – Part II - 23rd Mar 17
Is Now a Good Time to Invest in the US Housing Market? - 23rd Mar 17
The Stock Market Is a Present-Day Version of Pavlov’s Dog - 23rd Mar 17
US Budget - There’s Almost Nothing Left To Cut - 23rd Mar 17
Stock Market Upward Reversal Or Just Quick Rebound Before Another Leg Down? - 23rd Mar 17
Trends to Look Out For as a Modern-day Landlord - 23rd Mar 17
Here’s Why Interstate Health Insurance Won’t Fix Obamacare / Trumpcare - 23rd Mar 17
China’s Biggest Limitations Determine the Future of East Asia - 23rd Mar 17
This is About So Much More Than Trump and Brexit - 23rd Mar 17
Trump Stock Market Rally Over? 20% Bear Drop By Mid Summer? - 22nd Mar 17
Trump Added $3 Trillion in Wealth to Stock Market Participants - 22nd Mar 17
What's Next for the US Dollar, Gold and Stocks? - 22nd Mar 17
MSM Bond Market Full Nonsense Mode as ‘Trump Trades’ Unwind on Schedule - 22nd Mar 17
Peak Gold – Biggest Gold Story Not Being Reported - 22nd Mar 17
Return of Sovereign France, Europe’s Changing Landscape - 22nd Mar 17
Trump Stocks Bull Market Rolling Over? You Were Warned! - 22nd Mar 17
Stock Market Charts That Scream “This Is It” - Here’s What to Do - 22nd Mar 17
Raising the Minimum Wage Is a Jobs Killing Move - 22nd Mar 17
Potential Bottoming Patterns in Gold and Silver Precious Metals Stocks Complex... - 22nd Mar 17
UK Stagflation, Soaring Inflation CPI 2.3%, RPI 3.2%, Real 4.4% - 21st Mar 17
The Demise of the Gold and Silver Bull Run is Greatly Exaggerated - 21st Mar 17
USD Decline Continues, Pull SPX Down as well? - 21st Mar 17
Trump Watershed Budget - 21st Mar 17
How do Client Acquisition Offers Affect Businesses? - 21st Mar 17
Physical Metals Demand Plus Manipulation Suits Will Break Paper Market - 20th Mar 17
Stock Market Uncertainty Following Interest Rate Increase - Will Uptrend Continue? - 20th Mar 17
Precious Metals : Who’s in Charge ? - 20th Mar 17
Stock Market Correction Continues - 20th Mar 17
Why The Status Quo Is Under Increasing Attack By 'Populist People Power' - 20th Mar 17

Market Oracle FREE Newsletter

Elliott Wave Trading

Five On Fire High-Tech IPOs

Companies / Tech Stocks Dec 19, 2012 - 11:22 AM GMT

By: Money_Morning

Companies

Michael A. Robinson writes: Who says high-tech stocks have hit the skids?

In a move that bodes well for 2013 stock market, high-tech IPOs have been absolutely on fire in the closing weeks of 2012.

In fact, judging by their gains, high-tech IPOs have soundly beaten the rest of the market's new issues over the last three months. At least five soared by more than 40%.


Even the IPOs that many market watchers thought would fizzle have jumped out of the box.

The most recent is SolarCity Corp. (Nasdaq: SCTY) which debuted last week.

Instead of landing with a thud, shares of the solar panel installer soared nearly 50% on its first day of trading from a reduced offering price of $8 a share.

That left SolarCity tied for third place among IPO performers in the quarter that ends Dec. 31. Even as of late yesterday, SolarCity shares were still up by 55%.

But SolarCity is just the latest big winner. Here is a look at the other four winning high-tech IPOs based on their closing prices as of last week.

High-Tech IPO #1: Workday Inc. Posted 70% Gains
Located in Pleasanton, CA, Workday Inc. (NYSE:WDAY) is up 70% off of its offer price of $28/share. The company is a leading provider of cloud-based computing software that helps businesses manage their office operations online.

As such, Workday is getting a lift from two big trends -- the movement of data and applications to the Web, a.k.a. "the cloud," and the need for companies to slash labor costs. It offers payroll, financial management, time tracking, procurement, and employee expense management.

Workday says it is redefining what it means to manage global and diverse workforces at a time when employees are using more wireless devices. In fact, the home page of the firm's Website shows a picture of its software inside the screen of a smartphone.

No doubt, the firm shows strong growth. Shortly after its IPO, Workday said its fiscal 2013 third quarter sales grew by 99% from the year-ago period.

High-Tech IPO #2-3: Two Biotech Issues Finish in a Tie
Intercept Pharmaceuticals Inc. (Nasdaq:ICPT) is a development-stage biotech firm focused on novel therapeutics to treat chronic liver disease. The company says it has deep expertise in bile acid chemistry to treat liver diseases for which patients now have few options.

The company says its lead candidate, known as OCA, is the first product in its class to offer broad protection for the liver. Diseases such as hepatitis C can damage the body's second-largest organ and lead to death.

In the U.S. more than 1,700 people a year die from lack of liver transplants. Throw in the impact of obesity on the liver, and Intercept is looking at a global growth market. The stock is up more than 65% since it debuted on Oct. 11.

For its part, Kythera Biopharma Inc. (Nasdaq:KYTH) is up nearly 65% since it went public on the same day as Intercept. Kythera is focused on what it calls "aesthetic medicine."

As such, its lead candidate for FDA approval, ATX-101, treats double chins. The firm also is working on hair and fat biology as well as facial contouring. It has just completed enrolling patients in Phase 3 clinical trials in the U.S. and Canada.

High-Tech IPO #4: Amberella Matches SolarCity
Talk about a growth market. Ambarella Inc. (Nasdaq:AMBA) has its hooks in the fast-paced world of digital video at a time when millions are going online to watch everything from short clips to feature films.

Ambarella is a leading provider of low-power, high-definition video compression and image-processing solutions. Its products are used in a variety of HD cameras. These cover cameras for security, automotive video, wearable sports devices, and digital still pictures.

At the same time, the firm's technology is used in television broadcasting systems, with video content encoded and transmitted to audiences around the world.

Let me close by noting that a Web-related IPO finished just short of ranking in the top five of fourth-quarter tech IPOs. It's Shutterstock Inc. (NYSE:SSTK), which runs an online market for stock photos.

Since going public on Oct. 11, the stock is up roughly 45%. Then again, the firm has received buzz in everything from Reuters to The Wall Street Journal.

The Impact of Successful High-Tech IPOs
The success of these high-tech IPOs is vital to the entire investment world for two big reasons.

First of all, the current bull market is entering its fourth year. It is a period when stock returns tend to fizzle as the bulls decide to take profits and sit on their gains.

Simply put, to keep it all going it takes fresh inflows of cash to keep the hopes of strong market gains alive.

And that brings up point number two. The new ideas embedded in tech stocks serve as a lure for the fresh capital that will continue to drive the bull market forward.

See, the Fed can print all the money it wants to, but without new wares to ply, Wall Street's money train just runs out of steam.

That's why successful high-tech IPOs are so important to the market. Judging by how well these five have done, you can expect this market will keep moving forward in 2013.

Source :http://moneymorning.com/2012/12/19/these-five-high-tech-ipos-are-on-fire/

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

© 2005-2016 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

Catching a Falling Financial Knife