This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Another Medical-Equipment IPO in the Queue This Week

Like last week and the week before that, this week carries with it only a single IPO in the pricing queue. That's not necessarily a bad thing, as this IPO market is still learning to walk on what someone recently said are "wobbly legs." Actually, I disagree with that characterization because I appreciate the slow buildup of the calendar. Given the almost universal state of caution in the markets, it's probably the smartest way we can proceed.

I mentioned a deal this week, didn't I? Have a look at Universal Hospital Services (UHOS:Nasdaq), an IPO out of co-lead managers UBS Warburg and U.S. Bancorp Piper Jaffray. Piper Jaffray, as you probably remember, brought us the TheraSense (THER) IPO on Friday. That deal traded to a 30% premium in its first session, and this morning is trading even higher. Also on the UHOS prospectus cover is CIBC World Markets.

Universal Hospital Services is a provider of movable medical-equipment outsourcing services to the health care industry. The company falls into a sort of crossover category of medical services and equipment leasing. This makes solid comps tough to find, at least in the universe of recent IPOs. I'll give you my best shot, however, and compare it to Alliance Imaging (AIQ). Alliance, which went public in July at a price of $13, provides mobile MRI services on a shared-use basis.

Universal Hospital has shown strong revenue growth since at least 1998. Revenue for the six months ended June 30, 2001, came in at $60.8 million. Net losses for that period were $1.69 million. This compares with revenue of $51.9 million and a net loss of $2.58 million for the same period last year. Overall, the financials show an improving situation for the company, but will investors pay up for the stock?

My take is that the deal will trade flat to up a small premium immediately, and then fade below its issue price. Longer term, the stock will be gauged by the market according to its quarterly results.

Next week I see three IPOs on the calendar, with the possibility of at least one more being added by Friday. While not a huge number of deals, this is an improvement over the past few weeks. Keep your fingers crossed and let's hope that things continue to move along.

Trade safe.
Ben Holmes is the founder of, a Boulder, Colo.-based research boutique (now a wholly-owned subsidiary of specializing in the analysis of equity syndicate offerings. This column is not meant as investment advice; it is instead meant to provide insight into the methods of new and secondary offerings. Neither Holmes nor his firm has entered indications of interest in any of the companies discussed in this column. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Holmes appreciates your feedback and invites you to send it to Ben Holmes.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
THER $0.52 0.00%
AAPL $94.63 -3.30%
FB $116.70 7.20%
GOOG $690.08 -2.20%
TSLA $247.87 -1.40%


Chart of I:DJI
DOW 17,833.91 -207.64 -1.15%
S&P 500 2,077.13 -18.02 -0.86%
NASDAQ 4,812.3680 -50.7730 -1.04%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs