This Day On The Street
Continue to site
ADVERTISEMENT
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

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 IPODesktop.com.

Insurer Assurant (AIZ - Get Report) 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.

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
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AIZ $66.30 -0.24%
AAPL $132.54 0.88%
FB $80.54 0.07%
GOOG $540.11 -0.44%
TSLA $247.73 0.86%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs