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

A Breakdown of This Week's IPO Lineup

NEW YORK ( TheStreet -- SodaStream (SODA - Get Report) skyrocketed 74% after going public last week. That jump effectively placed a $700 million valuation on a company that only had income of $5.6 million for the first six months ending June 30, 2010.

The stock has since started to pull back, and perhaps when investors get to the bottom of the bottle they'll question whether Soda Stream, who's EBITDA equaled only 10% of its net income for those six months is worth the high price.

The IPO calendar is chock full of even more companies scheduled to go public this week, some profitable and some money losers. Here's a breakdown on the offerings:

Attractive IPOs

Inphi: Inphi's (IPHI - Get Report) revenues have been climbing every year, with roughly 33% coming from Samsung and 12% from Micron (MU).

It is a fabless provider of high-speed analog semiconductor products and many of its customers are based in Asia. IPO Desktop analyst Francis Gaskins acknowledges that the company faces competition from big names like Broadcom (BRCM) and NetLogic (NETL) and that technology is moving away from analog to digital.

But he notes that the stock's price-to-sales ratio of 3.8X is less than MaxLinear (MXL) (4.5) and only slightly higher than Broadcom (3.0).

"It looks like a safe bet at the IPO price of $9.50," Gaskins says.

RDA Microelectronics:

RDA Microelectronics (RDA)is a fabless designer of mixed signal semiconductor chips. Many of their products are used in mobile handsets, MP3 players and a host of other consumer electronic devices.

The company delivered $149 million in sales over the last 12 months, and the price-to-earnings ratio on the stock is around 13X, a little higher than Texas Instruments (TXN) (10) and STMicroelectronics (STM) (10), but lower than Broadcom (17).

This is a capital intensive business and the company hopes to raise $71 million in the offering to finance growth and develop products. "They have tremendous sales growth," says Gaskins. "That one should do quite well."

Noah Holdings:

Noah Holdings (NOAH - Get Report) is a wealth management company in China with 300 relationship managers in 28 offices, and sales have increased 260% and income jumped 500% last year.

Gaskins notes that the industry is in an embryonic stage because 80% of China's high net worth individuals make their own decisions. However, Noah's providers are independent and not affiliated with banks, which they feel will win the clients trust.

The average transaction value per client went from half a million in 2009 to one million in 2010. Gaskins likes the numbers and thinks it will be a good IPO. The proceeds will be used to set up new offices and update the IT infrastructure.
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
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
IPHI $29.67 -4.57%
NOAH $24.58 -1.92%
SODA $13.72 -0.44%
RDA $18.45 3.71%
AAPL $93.74 -1.15%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs