Preparing for 2011

It’s time to throw away those wrappers from last year and open a new box of candy. Here is the full text from our January 3 2011 Candygram.

At the end of the year there were a handful of “cleanup” pricings like Ventrus Biosciences and withdrawls like Wave2Wave Communications (a 4G play) and Oragenics (an oral hygiene company.)  There were 9 new deals filed towards year-end with a few that we’ll be digging into, including: Responsys (marketing software), NewLink Genetics (cancer treatments), Supernus Pharma (nervous system disorder treatments), ServiSource (maintenance revenue management) and China Sunflower for our “Lucky Candy” ecosystem. There are no deals in active marketing but that should change quickly.

PERFORMANCE

For the “class of 2010” names in our ecosystem, the best performers based on their IPO price were: HiSoft Technology, RealPage, Youku.com, Broadsoft, Qlik Technology, Camelot Information Systems, Fabrinet, Evestnet, and Motricity with gains of 100-200%.

The worst deals were Dynavox, Mitel Networks, Bona Film, SMART Technologies, Sky-Mobi, GenMark, Vringo, Alpha & Omega Semiconductors, Bitauto, and MaxLinear with losses of 20-60%.

For the month of December the average gain was 2% with the top 10 up 22% and thebottom 10 down 16%.

Top 5 for December
Company Ticker Gain Area
NXP  Semiconductors NXPI +30% Mixed Signal Semis
Fabrinet FN +26% Optical Networking
Amyris AMRS +24% Biofuels
Inphi IPHI +24% High Speed Semis
Pacific Biosciences PACB +23% DNA Sequencing

With the exception of Bitauto, most of the stocks in the bottom 5 for December appear to be profit taking after fairly large gains.

Bottom 5 for December
Company Ticker Gain Area
Bitauto BITA -26% China Online Autos
ChinaCache CCIH -25% China CDN
Motricity MOTR -22% Wireless Software
NetSpend NTSP -16% Debit Cards
Tesla Motors TSLA -15% Electric Vehicles

See the IPO Candy Performance page below for more details.

SELECTED COMPANY MORSELS

Demand Media updated their IPO filing with more information about how they account for content acquisition costs.  Should begin marketing soon.

Groupon closed a substantial financing and issued a statement that they would be in a position to do an IPO as early as the end of 2011.

Facebook received an investment from Goldman Sachs at a $50B valuation, according to the NYT.

BroadSoft completed a secondary stock offering.

Tesla has 3,000 pre-orders for the new model S luxury sedan.

Motricity decided to lay off 12 employees during the holidays in their Durham location.

TeleNav launched a new web strategy that includes a new map-based site (telenav.com).

IPO CANDY FOLIO UPDATE

Since its inception on July 27, 2010, the IPO Candy Folio was up just over 29% versus 18% for the Russell 2000 and 13% for the S&P 500 during the same period.  For December the folio was up 2.88%.  We’re not making any portfolio adjustments today but will be reviewing everything in the next week and sending out our adjustments on the system and via email.

More information and disclosures regarding the IPO Candy Folio can be found at:/invest.

FILINGS & THE PIPELINE

There are no deals in active marketing yet but that should change soon. We are tracking just over 30 deals that are filed and could begin marketing soon.  See the pipeline table for the list.

COVERAGE & THE CALENDAR

Most of the names scheduled for banking coverage were initiated on schedule but a few—Noah Holdings, Bitauto, RDA andAeroflex— were held up and will probably be hitting the wires today or tomorrow.

We’ve added street price targets for Booz Allen, Complete Genomics, Inphi, and Pacific Biosciences to the ecosystem overview.

One additional company, FXCM, is scheduled for coverage in the next two weeks (1/11/2011).

Several stocks will be coming off lockup agreements soon, although the windows could be extended during the earnings reporting period.  These include: SMART Technologies, RealD, Qlik Technologies, Camelot Information Systems, Ameresco, Green Dot andEnvestnet.

[Refer to the full report for our IPO Candy Ecosystem Overview, Performance and Pipeline tables.]

Please share this with your friends along with this link for the free email subscription to alerts and the CANDYGRAM.

Our next CANDYGRAM will be published on Tuesday, January 18th.

Leave a Reply