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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

IPO Watch: Market Turns Volatile

NEW YORK ( TheStreet) -- Newly minted shares of Cobalt International Energy (CIE) tumbled in their debut on the New York Stock Exchange after the company's stock was priced below expectations.

Cobalt offered 63 million shares at $13.50 each, less than the $15 to $17 it had predicted. The deal raised $850.5 million, which could reach $978.1 million if underwriters exercise an option to purchase 9.45 million additional shares.

Shares of Cobalt fell by as much as 7% after the pricing, and are currently changing hands at $13.41.

The past week has been the most volatile for initial public offerings this year, according to Morningstar (MORN). Only four of the eight deals scheduled to hit the market have managed to price.

"We have been asked many times over the past few weeks what to make of the growing trend of failed deals," Bill Buhr, head of Morningstar's IPO research team, wrote in a note Wednesday. "We think it's part of a normally functioning IPO market, especially now that more companies are trying to raise funds."

Unsurprisingly, the first half of 2009 was slow for IPOs, with only 14 coming to market. The companies that did go public possessed "strong fundamentals in recession-resilient sectors," Buhr wrote. As a result, they were some of the best performing new issues of 2009.

"Now that the door has been thrown wide open, with firms all along the quality spectrum trying to raise funds, it should not surprise anyone that investor demand for some of these offerings would be weak to non-existant," Buhr wrote.

1 of 2

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Try it NOW
Try it NOW
Try it NOW
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!
CIE $9.57 1.70%
CYS $8.96 0.56%
KAR $37.80 -0.34%
PEB $45.93 -1.40%
STWD $24.16 -0.58%


DOW 17,675.49 -100.63 -0.57%
S&P 500 2,060.39 -7.50 -0.36%
NASDAQ 4,872.8360 -28.0490 -0.57%

Partners Compare Online Brokers

Free Reports

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