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

Hot IPOs: Jive Software, Michael Kors

Stocks in this article: JIVE KORS

NEW YORK ( TheStreet -- December is shaping up to be a busy month for new offerings with 12 companies slated to go public this week alone.

Jive Software (JIVE) is expected to price its share sale Monday night. The Palo Alto, Calif.-based developer of social business applications is looking to raise $105.3 million, selling 11.7 million shares with a pricing range of $8-$11 per share.

The company could get some extra cachet from the spate of M&A activity in the sector of late. Recent deals include RightNow (RNOW) agreeing to be acquired by Oracle (ORCL) for $1.5 billion and Success Factors (SFSF) getting bought by SAP (SAP) for $3.4 billion.

At the same time, Jive competes with some heavyweights, including Microsoft (MSFT) and IBM (IBM), which could hurt it.

The company's main product taps into social media monitoring so that companies know what is being said about them online. Jive also markets itself to companies looking to engage in social marketing or turning customers into brand advocates.

For the six months ended June 30, Jive reported a loss of $30.6 million on revenue of $34 million, which compares to a loss of $13.3 million on revenue of $19.2 million in the same period a year earlier, according to its S-1 filing in late August.

IPO Desktop President Francis Gaskins thinks the stock will pop at its launch and suggests investors get some if they can.

Another one of this week's more eagerly anticipated offerings is Michael Kors (KORS).

The company is doing the opposite of a recent fashion IPO, Prada, which went public in Hong Kong. Kors is based in Hong Kong, but the fashion house is opting to list its new stock in the United States.

Kors is looking to raise $750.6 million through the sale of 41.7 million shares for between $17 and $19 each.

IPO Desktop's Gaskins believes the stock will move up in the after-market and is best compared to Coach (COH), the aspirational handbag company.

Michael Kors launched his namesake brand 30 years ago as an American luxury sportswear house. He has expanded that to footwear and apparel with a presence in 74 countries. The accessories including handbags, jewelry and watches now account for the majority of the wholesale and retail sales.

Total revenue in fiscal 2011 was $803 million vs. $508 million in 2010 -- a 58% increase. Gaskins believes Kors has better growth potential than Coach since it is only in 203 stores and could increase to 600. The price-to-tangible book value is about the same at 12X.

Kors was already well known in the fashion world, but shot to household fame as a judge in the reality show Project Runway. The additional exposure on the television show has boosted his name recognition with mainstream American women.

The majority of the current sales come from North America, but brand awareness in building in Europe and Asia. The company is in high-end department stores such as Neiman Marcus, Nordstroms (JWN) and Bloomingdale's (M).

Top Videos of 2011


-- Written by Debra Borchardt in New York.



>To contact the writer of this article, click here: Debra Borchardt.

>To follow the writer on Twitter, go to http://twitter.com/wallandbroad.

>To submit a news tip, send an email to: tips@thestreet.com.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Select the service that is right for you!

COMPARE ALL SERVICES
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!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • 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