SemiLEDs went public in December 2010 in an offer led by Bank of America Merrill Lynch, Barclays Capital and Jefferies. The offer priced above expectations at $17 per share and was over-subscribed, but since its IPO the Taiwan-based company has now fallen short in all three of its quarterly reports by wide margins, making it difficult to imagine what the fuss was about.
Thursday's adjusted loss of 16 cents a share for the company's fiscal third quarter was 150% worse than the average analysts' estimate of 6 cents a share, and its loss of 3 cents a share in its fiscal second quarter disappointed Wall Street expectations for a profit of 8 cents a share.
"I don't know too many IPOs that miss right off the bat and for consecutive quarters, that's a negative accomplishment," says Avian Securities LED analyst Andrew Abrams. "I looked at the filing when the company was first going public and my thought was 'It's so insignificant, why is it going public?' I asked guys in the LED sector who said, 'We never come up against them. They don't exist.' You can't blow the first
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