As we wrap up the month and the year we made some adjustments today (December 15th) to the IPO Candy Folio of stocks. For more information see our IPO Candy Investment page.
QLIK – This is a BI software company. We like their new QlikSense desktop analysis tool and think it will add to their growth and margins. Tableau (DATA) is another institutional favorite in the space but we prefer QLIK in terms of risk/reward.
CHRS – Coherus Biosciences is tapping into the huge opportunity in “biosimilar drugs” and we like their approach and management team. See the CHRS roadshow slides for more info.
Coupons.com (COUP) – We’ve liked this controversial name since their IPO. It has been painted with the same bad brush as less technology-focused plays like SALE but we see real value in their infrastructure.
FireEye (FEYE) – This one was a very hot IPO in the virtualization/security space and has settled into a risk/reward profile we’re more comfortable with now.
LendingClub (LC) – This personal loan company is a darling IPO and as such very highly valued. But we feel that their position, management team and opportunity demand we put at least a small position in the Folio.
Reducing TRUE, ZEN – Both attractive names but a combination of more competition and very high valuations spur us to trim to small positions for now.
Reducing ELLI – This has been a good play on mortgage processing but we are less sure today of their relative positioning and momentum.
Increasing INVN – Invensense has been a leader in those fancy motion sensors that go into phones, tablets, fitness devices and a host of future electronics. They have a software platform that links these sensors together to allow for more intelligence to be afforded to basic readings of movement, temperature, pressure, and location. The shares have been beaten down after some minor disappointment versus expectations – looks like an opportunity.
Increasing YDLE – Yodlee didn’t get much love on their IPO yet they have a pivotal position in online financial services that allows information to be shared and integrated across institutions. Seems like a good “back door” play on increasing online innovation in financial services.
Solazyme SZYM – So the horse has left the barn here but we have decided that we just don’t see the management team in a positive light after failing for so long to scale their process. Time to go.
CALA, CDNA – These are two biotechnology names that we have decided we won’t follow closely and without that coverage feel they should be in the Folio Plus we added CHRS above which we feel better about. We still hold BlueBird Bio which was a huge contributor in December.
Sciquest SQI – This is another case where our coverage won’t support continuing with the position. Still a good little company in a good space but just not good enough to make the cut.
We’ll probably have another review/update right at YE or in January. We continue to have a fairly large cash cushion of 26% which we would deploy on a substantial market decline. We might want to take advantage of those big post-Holiday sales.
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