This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

One Fine Day for IPOs

Updated from 2:26 p.m. EST

The new-issues market got a second wind Thursday, with five IPOs advancing in their debuts.

The performance, as the deals come from a broad array of sectors, is refreshing after two of three offerings fell below their issue levels Tuesday. "When a variety of companies come public and do well, it is a mark of a healthy market," said Francis Gaskins, editor of

Insurer Assurant (AIZ) was lately up $2.55, or 11.6%, to $24.55 after pricing 80 million shares at $22 a share in a deal valued at $1.76 billion, the biggest of the year.

According to a prospectus filing with the Securities and Exchange Commission, Assurant had net income of $263 million in the nine months ended Sept. 30, 2003 on revenue of $5.24 billion. The IPO is a spinoff from Dutch financial-services conglomerate Fortis.

"The Assurant offering is a huge deal," said Gaskins. "The underwriters had to price it well in order to sell it. And so, it came public at a low price-to-earnings ratio." Based on earnings for the first nine months of 2003, Assurant is trading at a multiple of 8.9.

In general, as they emerge from hibernation, IPO investors have favored profitable companies. The market reacted well to a $105 million offering from consumer debt collector Asset Acceptance (AACC) Thursday. The firm earned $12.1 million in the first nine months of last year. Shares were recently higher $1.50, or 10%, to $16.50.

Even some money-losing names were doing well Thursday. Biotech Renovis (RNVS) was ahead $2.80, or 23%, to $14.89. "The company has a low price-to-book ratio," said Gaskins.

Meanwhile, Bakers Footwear (BKRS) was up 48 cents, or 6.19%, to $8.25. The company had a net loss of $3.6 million for the nine months ended October 2003.

Oil and gas driller TODCO (THE), a $144 million spinoff of Transocean Holdings was lifting $1.40, or 11.7%, to $13.40, though it is unprofitable. "They're the biggest supplier of drilling rigs off the Gulf of Mexico," said Gaskins.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs