FX Alliance (FX) also has warnings flags on its offering. FX provides electronic FX trading products and is seeking $75 million from new shareholders.
The old shareholders? That would be Citigroup (C), Bank of America (BAC), Goldman Sachs (GS), and Morgan Stanley (MS). They are all getting out. Selling 100%. Investors need to question whether they want this cast-off from the big banks.
It isn't all bad, though. EPAM Systems (EPAM - Get Report) is an IT Services provider looking to raise $126 million, and it's worth a look. For the nine months ended in September, sales increased 58%.
EPAM is seeking to sell 7.4 million shares at $16 to $18 each. The stock will be selling at a discount to peers like Sapient (SAPE) and Infosys Technologies (INFY). The company has a big presence in Eastern Europe and is enjoying a growing acceptance of IT out of the region as opposed to IT from India. It's priced well and has differentiated itself in a crowded field.Synacor (SYNC - Get Report) is a small offering of $75 million. The company packages and bundles content for Internet customers. Specifically, customers that want to compete with Google (GOOG), Netflix (NFLX) and Amazon (AMZN). The company, which has only recently achieved profitability, is looking to sell 6.8 million shares at $10 to $12 each. Gaskins notes that at 70x adjusted earnings, the price could seem expensive. He said, "But if the rate of growth continues, then Synacor stock could increase in the after-market beyond the price range." -- Written by Debra Borchardt in New York.
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