[This is the text of the full February 1 2011 Candygram.]

Blankets of snow may have slowed much of the Northeast in January but the IPO fires have burned brightly.

Six new deals filed in the last two weeks including the much-anticipated LinkedIn as well as two others of special interest, Skullcandy and RPX Corp.

Five of the seven deals that priced in the last two weeks are names we will be adding to our IPO Candy ecosystem, including: Neilsen, Demand Media, BCD Semiconductor, Velti, and InterXion.

There are 17 deals in active marketing right now, ten of which we are following.  [See the IPO Candy ecosystem pipeline for details.]


For the month of January, the IPO Candy ecosystem was up 3% on average compared to 2% for the S&P 500. The top 10 names were up 26% and the bottom 10 were down 18%.


We continue to be in a very favorable environment for stocks in general and IPOs in particular.   Last year it was clear that investors were eager to find new names to invest in.  Activity on secondary markets like SharesPost and Second Market has expanded dramatically.

Although there isn’t much we like about the ballyhooed “Startup America” plan, it does support our belief that we will see an opening up of capital markets for small companies and private investors.  In the next few weeks we will be publishing a short overview of what that will mean for companies and investors.

Meanwhile, the tables below summarize the high and low points for IPO names in January.

Top 5 for January
Company Ticker Gain Area
TeleNav TNAV +44% Mobile Navigation
Bona Film BONA +36% China Film Distribution
Sky-Mobi MOBI +35% China Wireless Software
Ancestry.com ACOM +26% Online Genealogy Tools
NXP Semi NXPI +23% Mixed Signal Semis

SemiLEDS had a rough first quarterly report as a public company.

Bottom 5 for January
Company Ticker Loss Area
SemiLEDS LEDS -38% LED Semiconductors
Ming Yang MY -20% Wind Turbines
NOAH Hldngs NOAH -17% China Financial Svcs
ZST Digital NW ZSTN -17% China Cable EQ
Envestnet ENV -16% Online Investment Svc

See the IPO Candy Performance page below for more details.

Selected Company Morsels

Convio, a fairly low profile provider of online marketing solutions for non-profits, acquired StrategicOne for $6M to add database marketing and analytic tools.

Motricity, maker of mobile phone software, acquired Adenyo to provide mobile advertising services to carriers for $100M.

RealD expanded their relationship with Regal Entertainment to add up to 1,500 more screens.

SolarWinds, a software company focused on management tools, acquired a small provider of virtualization control software.

TeleNav continued to expand their GPS and location software on mobile Internet platforms like Android.


IPO Candy Folio Update

The IPO Candy Folio has been growing and has attracted $3.5M of new investment assets since inception in August 2010.

We have not made adjustments to the portfolio since mid-December so it’s time to make a few changes:


CBOE, 3% to 0%, no longer interesting

ACOM, 5% to 4%, taking profits

SPSC, 6% to 3%, limited upside

BITA, 3% to 2%, taking profits

QNST, 4% to 2%, taking profits

MDMD, 4% to 2%, lockup coming off


Cash goes from 3% to 9% of portfolio value.

New Positions

LEDS, 3%, Chinese LED Maker, missed quarter

MOBI, 3%, Mobile Internet SW in China

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


The Pipeline

As noted, the pipeline is full and building for a busy February.  We expect LinkedIn and Skullcandy to be two of the more interesting deals. There’s a heavy weighting of deals in biotechnology and healthcare. See the updated pipeline table in the IPO Candy Ecosystem for more details.


Coverage and the Calendar

The coverage calendar is fairly quiet but there is an avalanche of earnings reports on the way from almost all the companies in the ecosystem in the next two weeks.

Several stocks have exited or will be coming off lockup agreements. These include RealPage, MakeMyTrip, MediaMind, IntraLinks and NXP Semiconductors.

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

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