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
TheStreet Open House

5 Worst IPOs of 2011

Stocks in this article: FFN TBET IFT

NEW YORK ( TheStreet -- The IPO market got off to a strong start in 2011 in terms of deal flow, but the European financial crisis kicked in over the summer and put a stop to the offerings.

According to Renaissance Capital, more than 60% of the 125 deals that debuted went public in the first half of the year as the final six months saw many companies postpone or cancel their offerings.

From a performance standpoint, 2011 was a disappointment with the average IPO down 12% from its pricing level, and only one third of the year's newly public companies trading in positive territory through Thursday's close.

Chinese IPOs especially suffered in 2011 with the whole sector taking a hit as fraud allegations and accounting irregularities at certain companies tainted Wall Street's view of the whole group.

Deal activity from the region slowed this year with only 12 China-based companies debuting with U.S. listings vs. 40 offerings in 2010. Performance was poor as well with the average China-based IPO down 48% in 2011.

In fact, three of the five worst-performing IPOs of 2011 were companies based in China -- China Century Dragon Media (CCDM.PK), Tibet Pharmaceuticals (TBET) and Imperial Holdings (IFT - Get Report).

Rounding out the five worst performers are FriendFinder (FFN), which billed itself as a dating site, but most saw as something a bit more smarmy, and Kips Bay Medical (KIPS), which reported flat year-over-year sales of just $59,000 in the third quarter and suffered a regulatory setback.

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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!

Markets

DOW 17,678.70 +6.10 0.03%
S&P 500 2,057.09 +5.27 0.26%
NASDAQ 4,771.7630 +13.8840 0.29%

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