Ben Holmes

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IPO Market's All Fired Up and Ready to Go

Ben Holmes

This week is stacked with equity syndicate deals, 20 total. Of that number, six are IPOs. Do I love them all? Almost! I'll be straight and tell you that five of the six deals slated to price this week are carrying a HOT! flag on their backs. No, I've not gone loopy on you. Things are just looking good. Here's a quick rundown.

Tonight for tomorrow we have Fisher & Paykel Industries (proposed symbol FPHC:Nasdaq), which designs, manufactures and markets heated humidification products and systems for use in respiratory care. Consider this a solid medical device play. I like the balance sheet, you know I love the sector and Deutsche Banc Alex. Brown as lead is a feel-good feature of this deal. I'm looking for 10% to 20% out of this stock right out of the gate.

Another IPO pricing tonight is AMN Healthcare Services (proposed symbol AHS:NYSE). The company is in the temporary health care staffing business. Revenue growth has been explosive, and AMN turns a tidy profit. Consider this a good comp to Cross Country(CCRN), which, as I write this, is trading up a blistering 35% over its issue price. AMN is being led by underwriter Banc of America Securities.

Later in the week, Tuesday actually, we'll see Advisory Board (proposed symbol ABCO:Nasdaq) take a stab at going public. This one carries with it an excellent comp in Corporate Executive Board(EXBD). The deals also have a commonality in that both IPOs represent cashouts by the same shareholder, David Bradley, who founded both companies. Look at a chart of Corporate Executive and know that the market loves these deals. I expect at least a buck from this one on day one.

With proposed terms of 17.4 million shares at $21 to $23, Weight Watchers International (proposed symbol WTW:NYSE) is the largest offering of the week. It is also the most anticipated deal. Revenue is strong, profits even stronger. This deal looks like a performer. Credit Suisse First Boston leads.

Thursday night for Friday's trading expect offerings from DJ Orthopedics (proposed symbol DJO:NYSE), a medical device maker, and video game maker BAM! Entertainment (proposed symbol BFUN:Nasdaq). DJ Orthopedics is looking to capitalize on the market's current love affair with medical IPOs. BAM! seems especially well-timed given the obvious interest in video games during the upcoming holiday season. I am looking for a nice pop from these two names.

That's it for this week. Look for the third installation in my IPO primer series midweek.

Trade safe.