The IPO market came to pretty much a screeching halt in September as just three deals debuted. In September 2014 a total of 14 IPOs debuted. Thus far in 2015, a total of 120 IPOs have priced as compared to 192 that priced at the same point a year ago.
This post will allow us to post our results and emphasize the value of IPOBoutique’s senior managing partner Scott Sweet’s ratings. You can check out our entire track record at this link.
Here is a recap of our past performances:
Five-Rating
We consider these IPOs to be the best of the best. In our nine years of keeping a track-record we have given just 14 ‘five-ratings’ and all 14 have hit their respective targets. However, in September 2015, we did not give a ‘five’ rating.
Four-Rating
We consider these IPOs to be very strong buys and we anticipate 1-to-2 points of premium above the offering price at first trade. In September 2015, we dished out two, ‘four-ratings. Penumbra (NYSE: PEN) opened with a ten-point premium above the offering price. REGENXBIO (Nasdaq: RGNX) priced $3.00 above range and opened with a 38% boost above the offering price. To this point in 2015 we have rated a total of 30 deals with a ‘four-rating’ and the average opening above the offering is $8.40. In 2014, we rated 42 IPOs with a ‘four’ rating and these deals produced an average of $8.73 above the IPO price at first trade.
Three-Rating
We consider these IPOs to be moderate buys and we anticipate 1/2 to 1 point premium or more likely in the cases of these new issues. This past month there were no deals that we rated as a ‘3’ that debuted. There have been 49 IPOs that IPOBoutique has rated as a ‘3’ this year with the average return above the offering price at first trade being $2.60. In 2014, we rated 95 IPOs that came to market with a ‘three’ rating and the average gain above the IPO price at first trade was $1.95.
Two-Rating
We consider these IPOs to be “neutral” and thus do not have a particular point threshold to hit in order for us to deem it as ‘hitting its target’. We gave one deal a ‘two-rating’, Nabriva Therapeutics (Nasdaq: NBRV) and after pricing a quarter below the range, ‘NBRV’ opened with an 11% premium above the IPO price or $1.14 higher. So far in 2015, IPO Boutique has rated a total of 48 deals with a ‘two’ rating and those deals have returned an average of $0.059 above the offering price at first trade. In 2014, we rated a total of 124 deals a ‘two-rating’ and the average gain above the IPO price at first trade for the 124 deals was $0.36.
One-Rating
We advise our subscribers to avoid these IPOs as we consider them to be risky. In our nine years of keeping a track-record we have given just 49 ‘one’ ratings. In July, we did not give a ‘one’ rating.
IPOBoutique.Com provides comprehensive research, ratings and daily advisories on new issues hitting the IPO market. To subscribe to IPOBoutique’s service: click here.
English
Arabic
Chinese (Simplified)
Dutch
French
German
Italian
Portuguese
Russian
Spanish